22001A1214(01)

 

Interim Agreement on trade and trade-related matters between the

European Community, of the one part, and the Republic of Croatia, of

the other part - Final Act

 

Official Journal L 330 , 14/12/2001 P. 0003 - 0210 

 

Dates:

of document:   29/10/2001

of effect:   01/01/2002; Provisional application See Art 53.2

of effect:   01/03/2002; Entry into force See Art 53.2 And OJ

L 40/2002 P. 10

of signature:   29/10/2001; Luxembourg

end of validity:   99/99/9999; See Art. 49

 

Authentic language: The official languages ; German ; English ;

Spanish ; Italian ; Dutch ; Swedish ; Finnish ; Portuguese ; French

; Danish ; Other than Community language ; Serbocroat ; Greek

Author:

European Community ; Croatia

 

Subject matter: External relations ; Association ; Commercial policy

Directory code: 11401030

EUROVOC descriptor: EC interim agreement ; EC trade agreement ;

Croatia ; free movement of goods ; customs regulations ; transport

regulations

 

Legal basis:

197E133................... Adoption

197E300-P2L1FR1........... Adoption

Instruments cited:

151K......................

194N/PRO/09...............

294A1223(02)..............

294A1223(04)..............

294A1223(09)..............

294A1223(10)..............

294A1223(14)..............

197E036...................

197E037...................

197E081...................

197E082...................

197E086...................

197E087...................

300R2007..................

Amended by:

Relation...... 301D0868..........

Relation...... 301R2248..........

Adopted by.... 302D0107.......... from 28/01/2002

 

 

 

 

Interim Agreement

on trade and trade-related matters between the European Community,

of the one part, and the Republic of Croatia, of the other part

 

THE EUROPEAN COMMUNITY,

hereinafter referred to as "the Community",

of the one part, and

THE REPUBLIC OF CROATIA,

hereinafter referred to as "Croatia"

of the other part,

WHEREAS:

(1) The Stabilisation and Association Agreement between the European

Communities and its Member States, of the one part, and the Republic

of Croatia, of the other part, was signed at Luxembourg, on 29

October 2001.

(2) The Stabilisation and Association Agreement is intended to

establish a close and lasting relationship based on reciprocity and

mutual interest, which should allow Croatia to formalise and

strengthen the existing relationship with the European Union.

(3) It is necessary to ensure the development of trade links through

the establishment of a contractual relation.

(4) To this end it is necessary to implement as speedily as

possible, by means of an Interim Agreement, the provisions of the

Stabilisation and Association Agreement on trade and trade-related

matters.

(5) Some of the provisions included in Protocol 6 to the

Stabilisation and Association Agreement on land transport, which are

related to road transit traffic, are directly linked to free

movement of goods and consequently have to be included in this

Interim Agreement.

(6) It is necessary to ensure that pending the entry into force of

the Stabilisation and Association Agreement and the establishment of

the Stabilisation and Association Council, and in the absence of any

other contractual institutional structure a specific framework is

created to assist in the implementation of the Interim Agreement,

HAVE DECIDED to conclude this Agreement and to this end have

designated as their plenipotentiaries:

THE EUROPEAN COMMUNITY:

- Louis MICHEL

Deputy Prime Minister and Minister for Foreign Affairs of the

Kingdom of Belgium

President-in-Office of the Council of the European Union

- Christopher PATTEN

Member of the Commission of the European Communities,

CROATIA:

- Tonino PICULA

Minister of Foreign Affair of the Republic of Croatia

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

TITLE I

GENERAL PRINCIPLES

Article 1 (SAA Article 2)

Respect for the democratic principles and human rights as proclaimed

in the Universal Declaration of Human Rights and as defined in the

Helsinki Final Act and the Charter of Paris for a New Europe,

respect for international law principles and the rule of law as well

as the principles of market economy as reflected in the Document of

the CSCE Bonn Conference on Economic Cooperation, shall form the

basis of the domestic and external policies of the Parties and

constitute essential elements of this Agreement.

 

TITLE II

FREE MOVEMENT OF GOODS

Article 2 (SAA Article 15)

1. The Community and Croatia shall gradually establish a free trade

area over a period lasting a maximum of six years starting from the

entry into force of this Agreement in accordance with the provisions

of this Agreement and in conformity with those of the GATT 1994 and

the WTO. In so doing they shall take into account the specific

requirements laid down hereinafter.

2. The Combined Nomenclature of goods shall be applied to the

classification of goods in trade between the two Parties.

3. For each product the basic duty to which the successive

reductions set out in this Agreement are to be applied shall be the

duty actually applied erga omnes on the day preceding the signature

of this Agreement or the duty bound in the WTO for the year 2002,

whichever is the lowest.

4. If, after the signature of this Agreement, any tariff reduction

is applied on an erga omnes basis, in particular reductions

resulting from the tariff negotiations in the WTO, such reduced

duties shall replace the basic duty referred to in paragraph 3 as

from the date when such reductions are applied.

5. The Community and Croatia shall communicate to each other their

respective basic duties.

 

Chapter I

Industrial products

Article 3 (SAA Article 16)

1. The provisions of this Chapter shall apply to products

originating in the Community or in Croatia listed in Chapters 25 to

97 of the Combined Nomenclature, with the exception of the products

listed in Annex I, paragraph I, (ii) of the Agreement on agriculture

(GATT 1994).

2. The provisions of Articles 4 and 5 shall neither apply to textile

products nor to steel products of Chapter 72 of the Combined

Nomenclature, as specified in Articles 9 and 10.

3. Trade between the Parties in products covered by the Treaty

establishing the European Atomic Energy Community shall be conducted

in accordance with the provisions of that Treaty.

 

Article 4 (SAA Article 17)

1. Customs duties on imports into the Community of products

originating in Croatia shall be abolished upon the entry into force

of this Agreement.

2. Quantitative restrictions on imports into the Community and

measures having equivalent effect shall be abolished on the date of

entry into force of this Agreement with regard to products

originating in Croatia.

 

Article 5 (SAA Article 18)

1. Customs duties on imports into Croatia of goods originating in

the Community other than those listed in Annexes I and II shall be

abolished upon the entry into force of this Agreement.

2. Customs duties on imports into Croatia of goods originating in

the Community which are listed in Article I shall be progressively

reduced and eliminated in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be

reduced to 60 % of the basic duty,

- on 1 January 2003 each duty shall be reduced to 30 % of the basic

duty,

- on 1 January 2004 the remaining duties shall be abolished.

3. Customs duties on imports into Croatia of goods originating in

the Community which are listed in Article II shall be progressively

reduced and eliminated in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be

reduced to 70 % of the basic duty,

- on 1 January 2003 each duty shall be reduced to 50 % of the basic

duty,

- on 1 January 2004 each duty shall be reduced to 40 % of the basic

duty,

- on 1 January 2005 each duty shall be reduced to 30 % of the basic

duty,

- on 1 January 2006 each duty shall be reduced to 15 % of the basic

duty,

- on 1 January 2007 the remaining duties shall be abolished.

4. Quantitative restrictions on imports into Croatia of goods

originating in the Community and measures having equivalent effect

shall be abolished upon the date of entry into force of this

Agreement.

 

Article 6 (SAA Article 19)

The Community and Croatia shall abolish upon the entry into force of

this Agreement in trade between themselves any charges having an

effect equivalent to customs duties on imports.

 

Article 7 (SAA Article 20)

1. The Community and Croatia shall abolish any customs duties on

exports and charges having equivalent effect upon the entry into

force of this Agreement.

2. The Community and Croatia shall abolish between themselves any

quantitative restrictions on exports and measures having equivalent

effect upon the entry into force of this Agreement.

 

Article 8 (SAA Article 21)

Croatia declares its readiness to reduce its customs duties in trade

with the Community more rapidly than is provided for in Article 5,

if its general economic situation and the situation of the economic

sector concerned so permit.

The Interim Committee shall make recommendations to this effect.

 

Article 9 (SAA Article 22)

Protocol 1 lays down the arrangements applicable to the textile

products referred to therein.

 

Article 10 (SAA Article 23)

Protocol 2 lays down the arrangements applicable to the steel

products of Chapter 72 of the Combined Nomenclature referred to

therein.

 

Chapter II

Agriculture and fisheries

Article 11 (SAA Article 24)

Definition

1. The provisions of this Chapter shall apply to trade in

agricultural and fishery products originating in the Community or in

Croatia.

2. The term "agricultural and fishery products" refers to the

products listed in Chapters 1 to 24 of the Combined Nomenclature and

the products listed in Annex I, paragraph I, (ii) of the Agreement

on agriculture (GATT, 1994).

3. This definition includes fish and fisheries products covered by

Chapter 3, headings 1604 and 1605, and subheadings 0511 91, 2301 20

and ex 1902 20 ("stuffed pasta containing more than 20 % by weight

of fish, crustaceans, molluscs or other aquatic invertebrates").

 

Article 12 (SAA Article 25)

Protocol 3 lays down the trade arrangements for processed

agricultural products which are listed therein.

 

Article 13 (SAA Article 26)

1. On the date of entry into force of this Agreement, the Community

shall abolish all quantitative restrictions and measures having

equivalent effect on imports of agricultural and fishery products

originating in Croatia.

2. On the date of entry into force of this Agreement, Croatia shall

abolish all quantitative restrictions and measures having equivalent

effect on imports of agricultural and fishery products originating

in the Community.

 

Article 14 (SAA Article 27)

Agricultural products

1. From the date of entry into force of this Agreement, the

Community shall abolish the customs duties and charges having

equivalent effect on imports of agricultural products originating in

Croatia, other than those of heading Nos 0102, 0201, 0202 and 2204

of the Combined Nomenclature.

For the products covered by Chapters 7 and 8 of the Combined

Nomenclature, for which the Common Customs Tariff provides for the

application of ad valorem customs duties and a specific customs

duty, the elimination applies only to the ad valorem part of the

duty.

2. From the date of entry into force of this Agreement, the

Community shall fix the customs duties applicable to imports into

the Community of "baby-beef" products defined in Annex III and

originating in Croatia at 20 % of the ad valorem duty and 20 % of

the specific duty as laid down in the Common Customs Tariff of the

European Communities, within the limit of an annual tariff quota of

9400 tonnes expressed in carcase weight.

3 (a) From the date of entry into force of this Agreement, Croatia

shall:

(i) abolish the customs duties applicable on imports of certain

agricultural products originating in the Community, listed in

Article IV(a);

(ii) abolish the customs duties applicable on imports of certain

agricultural products originating in the Community, listed in

Article IV(b) within the limits of tariff quotas indicated for each

product in that Annex. The tariff quotas will be increased yearly by

a quantity indicated for each product in that Annex.

(b) From the first year after the date of entry into force of this

Agreement, Croatia shall:

(i) abolish the customs duties applicable on imports of certain

agricultural products originating in the Community, listed in

Article IV(c).

(c) From the date of entry into force of this Agreement, Croatia

shall:

(i) abolish progressively the customs duties applicable on imports

of certain agricultural products originating in the Community,

listed in Article IV(d) within the limits of tariff quotas and in

accordance with the timetable indicated for each product in that

Annex;

(ii) reduce progressively to 50 % of the most-favoured nation

treatment (MFN) duty the customs duties applicable on imports of

certain agricultural products originating in the Community, listed

in Article IV(e) in accordance with the timetable indicated for each

product in that Annex;

(iii) reduce progressively to 50 % of the MFN duty the customs

duties applicable on imports of certain agricultural products

originating in the Community, listed in Article IV(f) within the

limits of tariff quotas in accordance with the timetable indicated

for each product in that Annex.

4. The trade arrangements to apply to wine and spirit products will

be defined in an additional protocol on wine and spirits.

 

Article 15 (SAA Article 28)

Fisheries products

1. From the entry into force of this Agreement, the Community shall

totally eliminate customs duties on fish and fisheries products,

other than those listed in Annex V(a), originating in Croatia.

Products listed in Annex V(a) shall be subject to the provisions

laid down therein.

2. From the entry into force of this Agreement, Croatia shall

abolish all charges having an equivalent effect to a custom duty and

totally eliminate customs duties on fish and fisheries products,

other than those listed in Annex V(b), originating in the European

Community. Products listed in Annex V(b) shall be subject to

provisions laid down therein.

 

Article 16 (SAA Article 29)

Taking account of the volume of trade in agricultural and fishery

products between the Parties, of their particular sensitivities, of

the rules of the Community common policies and of the Croatian

policies for agriculture and fisheries, of the role of agriculture

and fisheries in Croatia's economy and of the consequences of the

multilateral trade negotiations under the WTO, the Community and

Croatia shall examine in the Interim Committee, no later than 1 July

2006, product by product and on an orderly and appropriate

reciprocal basis, the opportunities for granting each other further

concessions with a view to implementing greater liberalisation of

the trade in agricultural and fishery products.

 

Article 17 (SAA Article 30)

The provisions of this Chapter shall in no way affect the

application, on a unilateral basis, of more favourable measures by

one or the other Party.

 

Article 18 (SAA Article 31)

Notwithstanding other provisions of this Agreement, and in

particular Article 25, given the particular sensitivity of the

agricultural and fisheries markets, if imports of products

originating in one of the two Parties, which are the subject of

concessions granted pursuant to Article 12, 14 and 15, cause serious

disturbance to the markets or to their domestic regulatory

mechanisms, in the other Party, both Parties shall enter into

consultations immediately to find an appropriate solution. Pending

such solution, the Party concerned may take the appropriate measures

it deems necessary.

 

Chapter III

Common provisions

Article 19 (SAA Article 32)

The provisions of this Chapter shall apply to trade in all products

between the Parties except where otherwise provided herein or in

Protocols 1, 2 and 3.

 

Article 20 (SAA Article 33)

Standstill

1. From the date of entry into force of this Agreement, no new

customs duties on imports or exports or charges having equivalent

effect shall be introduced, nor shall those already applied be

increased, in trade between the Community and Croatia.

2. From the date of entry into force of this Agreement, no new

quantitative restriction on imports or exports or measure having

equivalent effect shall be introduced, nor shall those existing be

made more restrictive, in trade between the Community and Croatia.

3. Without prejudice to the concessions granted under Article 13,

the provisions of paragraphs 1 and 2 of this Article shall not

restrict in any way the pursuit of the respective agricultural

policies of Croatia and the Community or the taking of any measures

under those policies in so far as the import regime in the Annexes

III, IV(a), (b), (c), (d), (e), (f) and V(a) and (b) is not

affected.

 

Article 21 (SAA Article 34)

Prohibition of fiscal discrimination

1. The Parties shall refrain from, and abolish where existing, any

measure or practice of an internal fiscal nature establishing,

whether directly or indirectly, discrimination between the products

of one Party and like products originating in the territory of the

other Party.

2. Products exported to the territory of one of the Parties may not

benefit from repayment of internal indirect taxation in excess of

the amount of indirect taxation imposed on them.

 

Article 22 (SAA Article 35)

The provisions concerning the abolition of customs duties on imports

shall also apply to customs duties of a fiscal nature.

 

Article 23 (SAA Article 36)

Customs unions, free trade areas, cross-border arrangements

1. This Agreement shall not preclude the maintenance or

establishment of customs unions, free trade areas or arrangements

for frontier trade except in so far as they alter the trade

arrangements provided for in this Agreement.

2. During the transitional periods specified in Article 5, this

Agreement shall not affect the implementation of the specific

preferential arrangements governing the movement of goods either

laid down in frontier agreements previously concluded between one or

more Member States and the Socialist Federal Republic of Yugoslavia

and succeeded to by Croatia or resulting from the bilateral

agreements concluded by Croatia in order to promote regional trade.

3. Consultations between the Parties shall take place within the

Interim Committee concerning the agreements described in paragraphs

1 and 2 of this Article and, where requested, on other major issues

related to their respective trade policies towards third countries.

In particular in the event of a third country acceding to the

Community, such consultations shall take place so as to ensure that

account is taken of the mutual interests of the Community and

Croatia stated in this Agreement.

 

Article 24 (SAA Article 37)

Dumping

1. If one of the Parties finds that dumping is taking place in trade

with the other Party within the meaning of Article VI of the GATT

1994, it may take appropriate measures against this practice in

accordance with the Agreement on implementation of Article VI of the

GATT 1994 and its own related internal legislation.

2. As regards paragraph 1 of this Article, the Interim Committee

shall be informed of the dumping case as soon as the authorities of

the importing Party have initiated an investigation. When no end has

been put to the dumping within the meaning of Article VI of the GATT

1994 or no other satisfactory solution has been reached within 30

days of the matter being referred to the Interim Committee, the

importing Party may adopt the appropriate measures.

 

Article 25 (SAA Article 38)

General safeguard clause

1. Where any product of one Party is being imported into the

territory of the other Party in such increased quantities and under

such conditions as to cause or threaten to cause:

- serious injury to the domestic industry of like or directly

competitive products in the territory of the importing Party, or

- serious disturbances in any sector of the economy or difficulties

which could bring about serious deterioration in the economic

situation of a region of the importing Party,

the importing Party may take appropriate measures under the

conditions and in accordance with the procedures laid down in this

Article.

2. The Community and Croatia shall only apply safeguard measures

between themselves in accordance with the provisions of this

Agreement. Such measures shall not exceed what is necessary to

remedy the difficulties which have arisen, and should normally

consist of the suspension of the further reduction of any applicable

rate of duty provided for under this Agreement for the product

concerned or the increase of the rate of duty for that product. Such

measures shall contain clear elements progressively leading to their

elimination at the end of the set period at the latest. Measures

shall not be taken for a period exceeding one year. In very

exceptional circumstances, measures may be taken up to a total

maximum period of three years. No safeguard measure shall be applied

to the import of a product that has previously been subject to such

a measure for a period of, at least, three years since the expiry of

the measure.

3. In the cases specified in this Article, before taking the

measures provided for therein or, in the cases to which paragraph

4(b) applies, as soon as possible, the Community or Croatia, as the

case may be, shall supply the Interim Committee with all relevant

information, with a view to seeking a solution acceptable to the two

Parties.

4. For the implementation of the above paragraphs the following

provisions shall apply:

(a) The difficulties arising from the situation referred to in this

Article shall be referred for examination to the Interim Committee,

which may take any decisions needed to put an end to such

difficulties.

If the Interim Committee or the exporting Party has not taken a

decision putting an end to the difficulties or no other satisfactory

solution has been reached within 30 days of the matter being

referred to the Interim Committee, the importing Party may adopt the

appropriate measures to remedy the problem in accordance with this

Article. In the selection of safeguard measures, priority must be

given to those which least disturb the functioning of the

arrangements established in this Agreement;

(b) where exceptional and critical circumstances requiring immediate

action make prior information or examination, as the case may be,

impossible, the Party concerned may, in the situations specified in

this Article, apply forthwith precautionary measures necessary to

deal with the situation and shall inform the other Party immediately

thereof.

5. The safeguard measures shall be notified immediately to the

Interim Committee and shall be the subject of periodic consultations

within that body, particularly with a view to establishing a

timetable for their abolition as soon as circumstances permit.

6. In the event of the Community or Croatia subjecting imports of

products liable to give rise to the difficulties referred to in this

Article to an administrative procedure having as its purpose the

rapid provision of information on the trend of trade flows, it shall

inform the other Party.

 

Article 26 (SAA Article 39)

Shortage clause

1. Where compliance with the provisions of this Title leads to:

(a) a critical shortage, or threat thereof, of foodstuffs or other

products essential to the exporting Party; or

(b) re-export to a third country of a product against which the

exporting Party maintains quantitative export restrictions, export

duties or measures or charges having equivalent effect, and where

the situations referred to above give rise, or are likely to give

rise, to major difficulties for the exporting Party,

that Party may take appropriate measures under the conditions and in

accordance with the procedures laid down in this Article.

2. In the selection of measures, priority must be given to those

which least disturb the functioning of the arrangements in this

Agreement. Such measures shall not be applied in a manner which

would constitute a means of arbitrary or unjustifiable

discrimination where the same conditions prevail, or a disguised

restriction on trade and shall be eliminated when the conditions no

longer justify their maintenance.

3. Before taking the measures provided for in paragraph 1 of this

Article or, as soon as possible in cases to which paragraph 4 of

this Article applies, the Community or Croatia, as the case may be,

shall supply the Interim Committee with all relevant information,

with a view to seeking a solution acceptable to the Parties. The

Parties within the Interim Committee may agree on any means needed

to put an end to the difficulties. If no agreement is reached within

30 days of the matter being referred to the Interim Committee, the

exporting Party may apply measures under this Article on the

exportation of the product concerned.

4. Where exceptional and critical circumstances requiring immediate

action make prior information or examination, as the case may be,

impossible, the Community or Croatia, whichever is concerned, may

apply forthwith the precautionary measures necessary to deal with

the situation and shall inform the other Party immediately thereof.5. Any measures applied pursuant to this Article shall be

immediately notified to the Interim Committee and shall be the

subject of periodic consultations within that body, particularly

with a view to establishing a timetable for their elimination as

soon as circumstances permit.

 

Article 27 (SAA Article 40)

State monopolies

Croatia shall progressively adjust any state monopolies of a

commercial character so as to ensure that, by the end of the fourth

year following the entry into force of this Agreement, no

discrimination regarding the conditions under which goods are

procured and marketed exists between nationals of the Member States

of the European Union and Croatia. The Interim Committee shall be

informed about the measures adopted to attain this objective.

 

Article 28 (SAA Article 41)

Protocol 4 lays down the rules of origin for the application of

tariff preferences provided for in this Agreement.

 

Article 29 (SAA Article 42)

Restrictions authorised

This Agreement shall not preclude prohibitions or restrictions on

imports, exports or goods in transit justified on grounds of public

morality, public policy or public security; the protection of health

and life of humans, animals or plants; the protection of national

treasures of artistic, historic or archaeological value or the

protection of intellectual, industrial and commercial property, or

rules relating to gold and silver. Such prohibitions or restrictions

shall not, however, constitute a means of arbitrary discrimination

or a disguised restriction on trade between the Parties.

 

Article 30 (SAA Article 43)

Both Parties agree to cooperate to reduce the potential for fraud in

the application of the trade provisions of this Agreement.

Notwithstanding other provisions of this Agreement, and in

particular Articles 18, 25 and 37 and Protocol 4, where one Party

finds that there is sufficient evidence of fraud such as a

significant increase in trade of products by one Party to the other

Party, beyond the level reflecting economic conditions such as

normal production and export capacities, or failure to provide

administrative cooperation as required for the verification of

evidence of origin by the other Party, both Parties shall enter into

consultations immediately to find an appropriate solution. Pending

such solution, the Party concerned may take the appropriate measures

it deems necessary. In the selection of the measures, priority must

be given to those which least disturb the functioning of the

arrangements established in this Agreement.

 

Article 31 (SAA Article 44)

The application of this Agreement shall be without prejudice to the

application of the provisions of Community law to the Canary

Islands.

 

Article 32 (SAA Article 58(1)

Road transit traffic

Road transit traffic shall be regulated by the provisions of

Protocol 6.

 

TITLE III

PAYMENTS, COMPETITION AND OTHER ECONOMIC PROVISIONS

Article 33 (SAA Article 59)

The Parties undertake to authorise, in freely convertible currency,

in accordance with the provisions of Article VIII of the Articles of

the Agreement of the International Monetary Fund, any payments and

transfers on the current account of balance of payments between the

Community and Croatia.

 

Article 34 (SAA Article 66)

1. The Parties shall endeavour wherever possible to avoid the

imposition of restrictive measures, including measures relating to

imports, for balance of payments purposes. A Party adopting such

measures shall present as soon as possible to the other Party a

timetable for their removal.

2. Where one or more Member States of the European Union or Croatia

is in serious balance of payments difficulties, or under imminent

threat thereof, the Community or Croatia, as the case may be, may,

in accordance with the conditions established under the WTO

Agreement, adopt restrictive measures, including measures relating

to imports, which shall be of limited duration and may not go beyond

what is strictly necessary to remedy the balance of payments

situation. The Community or Croatia, as the case may be, shall

inform the other Party forthwith.

3. Any restrictive measures shall not apply to transfers related to

investment and in particular to the repatriation of amounts invested

or reinvested or any kind of revenues stemming therefrom.

 

Article 35 (SAA Article 70)

Competition and other economic provisions

1. The following are incompatible with the proper functioning of the

Agreement, in so far as they may affect trade between the Community

and Croatia:

(i) all agreements between undertakings, decisions by associations

of undertakings and concerted practices between undertakings which

have as their object or effect the prevention, restriction or

distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the

territories of the Community or of Croatia as a whole or in a

substantial part thereof;

(iii) any state aid which distorts or threatens to distort

competition by favouring certain undertakings or certain products.

2. Any practices contrary to this Article shall be assessed on the

basis of criteria arising from the application of the competition

rules applicable in the Community, in particular from Articles 81,

82, 86 and 87 of the Treaty establishing the European Community and

interpretative instruments adopted by the Community institutions.

3. The Parties shall ensure that an operationally independent public

body is entrusted with the powers necessary for the full application

of paragraph 1(i) and (ii) of this Article, regarding private and

public undertakings and undertakings to which special rights have

been granted.

4. Croatia shall establish an operationally independent authority

which is entrusted with the powers necessary for the full

application of paragraph 1(iii) of this Article within one year from

the date of entry into force of this Agreement. This authority shall

have, inter alia, the powers to authorise state aid schemes and

individual aid grants in conformity with paragraph 2 of this

Article, as well as the powers to order the recovery of state aid

that has been unlawfully granted.

5. Each Party shall ensure transparency in the area of state aid,

inter alia by providing to the other Party a regular annual report,

or equivalent, following the methodology and the presentation of the

Community survey on state aid. Upon request by one Party, the other

Party shall provide information on particular individual cases of

public aid.

6. Croatia shall establish a comprehensive inventory of aid schemes

instituted before the establishment of the authority referred to in

paragraph 4 and shall align such aid schemes with the criteria

referred to in paragraph 2 of this Article within a period of no

more than four years from the entry into force of this Agreement.

7. (a) For the purposes of applying the provisions of paragraph

1(iii), the Parties recognise that during the first four years after

the entry into force of this Agreement, any public aid granted by

Croatia shall be assessed taking into account the fact that Croatia

shall be regarded as an area identical to those areas of the

Community described in Article 87(3)(a) of the Treaty establishing

the European Community.

(b) Within three years from the entry into force of this Agreement,

Croatia shall submit to the Commission of the European Communities

its GDP per capita figures harmonised at NUTS II level. The

authority referred to in paragraph 4 and the Commission of the

European Communities shall then jointly evaluate the eligibility of

the regions of Croatia as well as the maximum aid intensities in

relation thereto in order to draw up the regional aid map on the

basis of the relevant Community guidelines.

8. With regard to products referred to in Chapter II of Title II:

- paragraph 1(iii) shall not apply,

- any practices contrary to paragraph 1(i) shall be assessed

according to the criteria established by the Community on the basis

of Articles 36 and 37 of the Treaty establishing the European

Community and specific Community instruments adopted on this basis.

9. If one of the Parties considers that a particular practice is

incompatible with the terms of paragraph 1 of this Article, it may

take appropriate measures after consultation within the Interim

Committee or after 30 working days following referral for such

consultation.

Nothing in this Article shall prejudice or affect in any way the

taking, by either Party, of anti-dumping or countervailing measures

in accordance with the relevant Articles of GATT 1994 and WTO

Agreement on Subsidies and Countervailing Measures or related

internal legislation.

 

Article 36 (SAA Article 71)

Intellectual, industrial and commercial property

1. Pursuant to the provisions of this Article and Annex VI, the

Parties confirm the importance that they attach to ensure adequate

and effective protection and enforcement of intellectual, industrial

and commercial property rights.

2. Croatia shall take the necessary measures in order to guarantee

no later than three years after entry into force of this Agreement a

level of protection of intellectual, industrial and commercial

property rights similar to that existing in the Community, including

effective means of enforcing such rights.

3. The Interim Committee may decide to oblige Croatia to accede to

specific multilateral Conventions in this area.

4. If problems in the area of intellectual, industrial and

commercial property affecting trading conditions occur, they shall

be referred urgently to the Interim Committee, at the request of

either Party, with a view to reaching mutually satisfactory

solutions.

 

Article 37 (SAA Article 89)

Customs

Mutual assistance between administrative authorities in customs

matters of the Parties shall take place in accordance with the

provisions of Protocol 5.

 

TITLE IV

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 38

An Interim Committee is hereby established which shall supervise the

application and implementation of this Agreement. It shall hold

meetings at regular intervals and when circumstances require.

 

Article 39

1. The Interim Committee shall have the power to take decisions

within the scope of the Agreement, in the cases provided for

therein. The decisions taken shall be binding on the Parties which

shall take the measures necessary to implement them. The Interim

Committee may also formulate recommendations which it considers

desirable for the purpose of attaining the common objectives and the

smooth functioning of this Agreement. It shall draw up its decisions

and recommendations by agreement between the Parties.

2. The Interim Committee shall adopt its own rules of procedure.

 

Article 40

1. The Interim Committee shall be composed of representatives of the

Community, on the one hand, and of representatives of Croatia, on

the other. The members of the Interim Committee may be represented

as laid down in its rules of procedure.

2. The chairmanship of the Interim Committee will alternate between

the Parties, in accordance with the conditions laid down in the

rules of procedures.

3. The Interim Committee shall act by mutual agreement by the

Parties.

 

Article 41

The Interim Committee may create subcommittees.

 

Article 42 (SAA Article 113)

Each Party shall refer to the Interim Committee any dispute relating

to the application or interpretation of this Agreement. The Interim

Committee may settle the dispute by means of a binding decision.

 

Article 43 (SAA Article 117)

Within the scope of this Agreement, each Party undertakes to ensure

that natural and legal persons of the other Party have access free

of discrimination in relation to its own nationals to the competent

courts and administrative organs of the Parties to defend their

individual rights and their property rights.

 

Article 44 (SAA Article 118)

Nothing in this Agreement shall prevent a Party from taking any

measures:

(a) which it considers necessary to prevent the disclosure of

information contrary to its essential security interests;

(b) which relate to the production of, or trade in, arms, munitions

or war materials or to research, development or production

indispensable for defence purposes, provided that such measures do

not impair the conditions of competition in respect of products not

intended for specifically military purposes;

(c) which it considers essential to its own security in the event of

serious internal disturbances affecting the maintenance of law and

order, in time of war or serious international tension constituting

threat of war or in order to carry out obligations it has accepted

for the purpose of maintaining peace and international security.

 

Article 45 (SAA Article 119)

1. In the fields covered by this Agreement and without prejudice to

any special provisions contained therein:

- the arrangements applied by Croatia in respect of the Community

shall not give rise to any discrimination between the Member States,

their nationals, companies or firms,

- the arrangements applied by the Community in respect of Croatia

shall not give rise to any discrimination between Croatian

nationals, companies or firms.

2. The provisions of paragraph 1 shall be without prejudice to the

right of the Parties to apply the relevant provisions of their

fiscal legislation to taxpayers who are not in identical situations

as regards their place of residence.

 

Article 46 (SAA Article 120)

1. The Parties shall take any general or specific measures required

to fulfil their obligations under this Agreement. They shall see to

it that the objectives set out in this Agreement are attained.

2. If either Party considers that the other Party has failed to

fulfil an obligation under this Agreement, it may take appropriate

measures. Before so doing, except in cases of special urgency, it

shall supply the Interim Committee with all relevant information

required for a thorough examination of the situation with a view to

seeking a solution acceptable to the Parties.

3. In the selection of measures, priority must be given to those

which least disturb the functioning of this Agreement. These

measures shall be notified immediately to the Interim Committee and

shall be the subject of consultations within the Interim Committee

if the other Party so requests.

 

Article 47 (SAA Article 121)

The Parties agree to consult promptly through appropriate channels

at the request of either Party to discuss any matter concerning the

interpretation or implementation of this Agreement and other

relevant aspects of the relations between the Parties.

The provisions of this Article shall in no way affect and are

without prejudice to Articles 18, 25, 26 and 30.

 

Article 48 (SAA Article 123)

Protocols 1, 2, 3, 4, 5 and 6 and Annexes I to VI shall form an

integral part of this Agreement.

 

Article 49 (SAA Article 124)

This Agreement shall be applicable until the entry into force of the

Stabilisation and Association Agreement signed at Luxembourg, on 29

October 2001.

Either Party may denounce this Agreement by notifying the other

Party. This Agreement shall terminate six months after the date of

such notification.

 

Article 50 (SAA Article 126)

This Agreement shall apply, on the one hand, to the territories in

which the Treaty establishing the European Community is applied and

under the conditions laid down in that Treaty, and to the territory

of Croatia, on the other.

 

Article 51 (SAA Article 127)

The Secretary General of the Council of the European Union shall be

the depository of the Agreement.

 

Article 52 (SAA Article 128)

This Agreement is drawn up in duplicate in each of the official

languages of the Parties, each of these texts being equally

authentic.

 

Article 53 (SAA Article 129)

1. The Parties shall approve this Agreement in accordance with their

own procedures.

2. This Agreement shall enter into force on the first day of the

second month following the date on which the Parties notify each

other that the procedures referred to in the first paragraph have

been completed. In the event of the procedures under paragraph 1 not

being completed in time to allow for its entry into force on 1

January 2002, this Agreement shall provisionally apply as from that

date.

 

 

 

Hecho en Luxemburgo, el veintinueve de octubre del dos mil uno.

Udfördiget i Luxembourg den niogtyvende oktober to tusind og en.

Geschehen zu Luxemburg am neunundzwanzigsten Oktober

zweitausendundeins.

>ISO_7>øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ õčś˙ėł õżżąń ĻśĮųņęč˙į ōž˙

šłūłĄōõĖ ążń.

>ISO_1>Done at Luxembourg on the twenty-ninth day of October in the

year two thousand and one.

Fait š Luxembourg, le vingt-neuf octobre deux mille un.

Fatto a Lussemburgo, addü ventinove ottobre duemilauno.

Gedaan te Luxemburg, de negenentwintigste oktober tweeduizendeneen.

Feito em Luxemburgo, em vinte e nove de Outubro de dois mil e um.

Tehty Luxemburgissa kahdentenakymmenentenōyhdeksōntenō pōivōnō

lokakuuta vuonna kaksituhattayksi.

Som skedde i Luxemburg den tjugonionde oktober tjugohundraett.

Sastavljeno u Luksemburgu, dana dvadeset devetoga listopada godine

dvije tisuce prve.

 

Por la Comunidad Europea/For Det Europöiske Föllesskab/FŽr die

Europōische Gemeinschaft/>ISO_7>Ćłń Į÷ż ÅįęųĘńŪśČ

Ź˙łżŽĮ÷Įń/>ISO_1>For the European Community/Pour la Communautł

europłenne/Per la Comunitš europea/Voor de Europese Gemeenschap/Pela

Comunidade Europeia/Euroopan yhteisŠn puolesta/Põ Europeiska

gemenskapens vōgnar

>PIC FILE= "L_2001330EN.001301.TIF">

>PIC FILE= "L_2001330EN.001302.TIF">

Za Republiku Hrvatsku

>PIC FILE= "L_2001330EN.001303.TIF">

 

 

LIST OF ANNEXES

 

 

>TABLE POSITION>

 

 

ANNEX I

 

CROATIAN TARIFF CONCESSION FOR COMMUNITY INDUSTRIAL PRODUCTS

(referred to in Article 5(2))

Duty rates will be reduced as follows:

- on the date of entry into force of the Agreement, duty shall be

reduced to 60 % of the basic duty,

- on 1 January 2003, duty shall be reduced to 30 % of the basic

duty,

- on 1 January 2004, the remaining duties shall be abolished.

>TABLE POSITION>

 

 

ANNEX II

 

CROATIAN TARIFF CONCESSION FOR COMMUNITY INDUSTRIAL PRODUCTS

(referred to in Article 5(3))

Duty rates will be reduced as follows:

- on the date of entry into force of the Agreement, duty shall be

reduced to 70 % of the basic duty,

- on 1 January 2003, duty shall be reduced to 50 % of the basic

duty,

- on 1 January 2004, duty shall be reduced to 40 % of the basic

duty,

- on 1 January 2005, duty shall be reduced to 30 % of the basic

duty,

- on 1 January 2006, duty shall be reduced to 15 % of the basic

duty,

- on 1 January 2007, the remaining duties shall be abolished.

>TABLE POSITION>

 

 

ANNEX III

 

DEFINITION OF "BABY BEEF" PRODUCTS

(referred to in Article 4(2))

Notwithstanding the rules for the interpretation of the Combined

Nomenclature, the wording for the description of the products is to

be considered as having no more than an indicative value, the

preferential scheme being determined, within the context of this

Annex, by the coverage of the CN codes. Where ex CN codes are

indicated, the preferential scheme is to be determined by

application of the CN code and corresponding description taken

together.

>TABLE POSITION>

 

 

ANNEX IV(a)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(duty-free for unlimited quantities at the date of entering into

force of the Agreement)

(referred to in Article 14(3)(a)(i))

>TABLE POSITION>

 

 

ANNEX IV(b)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(duty-free within quota at the entering into force of the Agreement)

(referred to in Article 14(3)(a)(ii))

>TABLE POSITION>

 

 

ANNEX IV(c)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(duty-free for unlimited quantities one year after entering into

force of the Agreement)

(referred to in Article 14(3)(b)(i))

>TABLE POSITION>

 

 

ANNEX IV(d)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(progressive elimination of MFN duties within tariff quotas)

(referred to in Article 14(3)(c)(i))

Customs duties for the commodities listed in this Annex shall be

reduced and eliminated in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be

reduced to 80 % of the basic duty,

- on 1 January 2003 each duty shall be reduced to 60 % of the basic

duty,

- on 1 January 2004 each duty shall be reduced to 40 % of the basic

duty,

- on 1 January 2005 each duty shall be reduced to 20 % of the basic

duty,

- on 1 January 2006 the remaining duties shall be abolished.

>TABLE POSITION>

 

 

ANNEX IV(e)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(progressive reduction of MFN duties for unlimited quantities)

(referred to in Article 14(3)(c)(ii))

Customs duties for the commodities listed in this Annex shall be

reduced in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be

reduced to 90 % of the basic duty,

- on 1 January 2003 each duty shall be reduced to 80 % of the basic

duty,

- on 1 January 2004 each duty shall be reduced to 70 % of the basic

duty,

- on 1 January 2005 each duty shall be reduced to 60 % of the basic

duty,

- on 1 January 2006 each duty shall be reduced to 50 % of the basic

duty.

>TABLE POSITION>

 

 

ANNEX IV(f)

 

CROATIAN TARIFF CONCESSION FOR AGRICULTURAL PRODUCTS

(progressive reduction of MFN duties within quota)

(referred to in Article 14(3)(c)(iii))

Customs duties for the commodities listed in this Annex shall be

reduced in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be

reduced to 90 % of the basic duty,

- on 1 January 2003 each duty shall be reduced to 80 % of the basic

duty,

- on 1 January 2004 each duty shall be reduced to 70 % of the basic

duty,

- on 1 January 2005 each duty shall be reduced to 60 % of the basic

duty,

- on 1 January 2006 each duty shall be reduced to 50 % of the basic

duty.

>TABLE POSITION>

 

 

ANNEX V(a)

 

PRODUCTS REFERRED TO IN ARTICLE 15(1)

>TABLE POSITION>

>TABLE POSITION>

Over the quota volume, the full MFN rate of duty is applicable.

>TABLE POSITION>

 

 

ANNEX V(b)

 

PRODUCTS REFERRED TO IN ARTICLE 15(2)

>TABLE POSITION>

>TABLE POSITION>

Over the quota volume, the full MFN rate of duty is applicable.

>TABLE POSITION>

 

 

ANNEX VI

 

INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY RIGHTS

(referred to in Article 36)

1. The Parties confirm the importance they attach to the obligations

arising from the following Multilateral Conventions:

- International Convention for the Protection of Performers,

Producers of Phonograms and Broadcasting Organizations (Rome, 1961),

- Paris Convention for the Protection of Industrial Property

(Stockholm Act, 1967 and amended in 1979),

- Madrid Agreement concerning the International Registration of

Marks (Stockholm Act, 1967 and amended in 1979),

- Patent Cooperation Treaty (Washington, 1970, amended in 1979 and

modified in 1984),

- Convention for the Protection of Producers of Phonograms against

Unauthorised Duplications of their Phonograms (Geneva 1971),

- Berne Convention for the Protection of Literary and Artistic Works

(Paris Act, 1971),

- Nice Agreement concerning the International Classification of

Goods and Services for the purposes of the Registration of Marks

(Geneva, 1977 and amended in 1979),

- WIPO Copyright Treaty (Geneva, 1996),

- WIPO Performances and Phonograms Treaty (Geneva, 1996).

2. From the entry into force of this Agreement, the Parties shall

grant, in accordance with the TRIPS Agreement, to each others

companies and nationals, in respect of the recognition and

protection of intellectual, industrial and commercial property,

treatment no less favourable than that granted by them to any third

country under bilateral agreements.

 

 

LIST OF PROTOCOLS

 

 

>TABLE POSITION>

 

 

PROTOCOL 1

On textile and clothing products

 

Article 1

This Protocol applies to the textile and clothing products

(hereinafter "textile products") listed in Section XI (Chapter 50 to

63) of the Combined Nomenclature of the Community.

 

Article 2

1. Textile products falling within Section XI (Chapter 50 to 63) of

the Combined Nomenclature and originating in Croatia as defined in

Protocol 4 of this Agreement will enter into the Community free of

customs duties on the date of entry into force of this Agreement.

2. The duties applied to direct imports into Croatia of textile

products falling within Section XI (Chapters 50 to 63) of the

Combined nomenclature and originating in the Community as defined in

Protocol 4 of the Agreement shall be abolished on the date of entry

into force of Agreement except for products listed in Annexes I and

II to this Protocol for which the rates of duties shall be

progressively reduced as provided therein.

3. Subject to this Protocol, the provisions of the Agreement and in

particular Articles 6 and 7 of the Agreement shall apply to trade in

textile products between the parties.

 

Article 3

The double-checking arrangements and other related issues regarding

exports of textile products originating in Croatia to the Community

and originating in the Community to Croatia are stipulated in the

Agreement between the European Community and the Republic of Croatia

on trade in textile products initialled on 8 November 2000 and

provisionally applied since 1 January 2001.

 

Article 4

From the entry into force of this Agreement, no new quantitative

restrictions or measures of equivalent effect shall be imposed

except as provided for under the above Agreement and its Protocols.

 

 

 

 

ANNEX I

 

Duty rates will be reduced as follows:

- On the entry into force of the Agreement, duty shall be reduced to

60 % of the basic duty,

- On 1 January 2003, duty shall be reduced to 30 % of the basic

duty,

- On 1 January 2004 the remaining duties shall be abolished.

>TABLE POSITION>

 

 

ANNEX II

 

Duty rates will be reduced as follows:

- on the date of entry into force of the Agreement, duty shall be

reduced to 65 % of the basic duty,

- on 1 January 2003, duty shall be reduced to 50 % of the basic

duty,

- on 1 January 2004, duty shall be reduced to 35 % of the basic

duty,

- on 1 January 2005, duty shall be reduced to 20 % of the basic

duty,

- on 1 January 2006, the remaining duties shall be abolished.

>TABLE POSITION>

 

 

PROTOCOL 2

on steel products

 

Article 1

This Protocol shall apply to the products listed in Chapter 72 of

the Common Customs Tariff. It shall also apply to other finished

steel products that may originate in future in Croatia under the

above chapter.

 

Article 2

Customs duties on imports applicable in the Community on steel

products originating in Croatia shall be abolished on the date of

entry into force of the Agreement.

 

Article 3

1. Customs duties applicable in Croatia on imports of steel products

originating in the Community other than those listed in Annex I

shall be abolished at the entry into force of the Agreement.

2. Customs duties applicable in Croatia on imports of steel products

listed in Annex I shall be progressively abolished in accordance

with the following timetable:

- on the date of entry into force of the Agreement, duty shall be

reduced to 65 % of the basic duty,

- on 1 January 2003, duty shall be reduced to 50 % of the basic

duty,

- on 1 January 2004, duty shall be reduced to 35 % of the basic

duty,

- on 1 January 2005, duty shall be reduced to 20 % of the basic

duty,

- on 1 January 2006, the remaining duties shall be abolished.

 

Article 4

1. Quantitative restrictions on imports into the Community of steel

products originating in Croatia as well as measures having

equivalent effect shall be abolished on the date of entry into force

of the Agreement.

2. Quantitative restrictions on imports into Croatia of steel

products originating in the Community, as well as measures having

equivalent effect, shall be abolished on the date of entry into

force of the Agreement.

 

Article 5

1. In view of the disciplines stipulated by Article 35 of the

Agreement, the Parties recognise the need and urgency that each

Party addresses promptly any structural weaknesses of its steel

sector to ensure the global competitiveness of its industry. Croatia

shall therefore establish within two years the necessary

restructuring and conversion programme for its steel industry to

achieve viability of this sector under normal market conditions.

Upon request, the Community shall provide Croatia with the

appropriate technical advice to achieve this objective.

2. Further to the disciplines stipulated by Article 35 of the

Agreement, any practices contrary to this Article shall be assessed

on the basis of specific criteria arising from the application of

the state aid disciplines of the Community, including secondary

legislation, and including any specific rules on state aid control

applicable to the steel sector after the expiry of the ECSC Treaty.

3. For the purposes of applying the provisions of paragraph 1(iii)

of Article 35 of the Agreement with regard to steel products, the

Community recognises that during five years after the entry into

force of the Agreement Croatia may exceptionally grant state aid for

restructuring purposes provided that:

- it leads to the viability of the benefiting firms under normal

market conditions at the end of the restructuring period, and

- the amount and intensity of such aid are strictly limited to what

is absolutely necessary in order to restore such viability and are

progressively reduced, and

- the restructuring programme is linked to a global rationalisation

and reduction of capacity in Croatia.

4. Each Party shall ensure full transparency with respect to the

implementation of the necessary restructuring and conversion

programme by a full and continuous exchange of information to the

other Party, including details on the restructuring plan as well as

amount, intensity and purpose for any state aid granted on the basis

of paragraphs 2 and 3 of this article.

5. The Interim Committee shall monitor the implementation of the

requirements set out in paragraphs 1 to 4 above.

6. If one of the Parties considers that a particular practice of the

other Party is incompatible with the terms of this article, and if

that practice causes or threatens to cause prejudice to the

interests of the first Party or material injury to its domestic

industry, this Party may take appropriate measures after

consultation within the contact group referred to in Article 7 or

after 30 working days following referral for such consultation.

 

Article 6

The provisions of Articles 6, 7 and 8 of the Agreement shall apply

to trade between the Parties in steel products.

 

Article 7

The Parties agree that for the purpose of following and reviewing

the proper implementation of this Protocol, a contact group shall be

created in accordance with Article 41 of the Agreement.

 

 

 

 

ANNEX I

 

 

>TABLE POSITION>

 

 

PROTOCOL 3

on trade between the Community and Croatia in processed agricultural

products

 

Article 1

1. The Community and Croatia apply to processed agricultural

products the duties listed in Annex I and Annex II respectively in

accordance with the conditions mentioned therein, whether limited by

quota or not.

2. The Interim Committee shall decide on:

- extensions of the list of processed agricultural products under

this Protocol,

- amendments to the duties referred to in Annexes I and II,

- increases in or the abolition of tariff quotas.

3. The Interim Committee may replace the duties established by this

Protocol by a regime established on the basis of the respective

market prices of the Community and Croatia of agricultural products

actually used in the manufacture of processed agricultural products

subject to this Protocol.

 

Article 2

The duties applied pursuant to Article 1 may be reduced by decision

of the Interim Committee:

- when in trade between the Community and Croatia the duties applied

to the basic products are reduced, or

- in response to reductions resulting from mutual concessions

relating to processed agricultural products.

 

Article 3

The Community and Croatia shall inform each other of the

administrative arrangements adopted for the products covered by this

Protocol. These arrangements should ensure equal treatment for all

interested parties and should be as simple and flexible as possible.

 

 

 

 

ANNEX I

 

Duties applicable upon imports into the Community of goods

originating in Croatia

Duties are set to zero for imports into the Community of processed

agricultural products originating in Croatia as listed hereafter.

>TABLE POSITION>

 

 

ANNEX II

 

List 1

Goods originating in the Community for which Croatia will eliminate

duties (immediately or gradually)

>TABLE POSITION>

List 2

Quotas and duties applicable upon import into Croatia of goods

originating in the Community

>TABLE POSITION>

Note:

The products listed in this table shall benefit from a zero-duty

tariff within the tariff quotas set out below. The volume of these

quotas will be increased annually in the years 2003, 2004, 2005 and

2006 by 10 % of the volume for 2002. The applicable duty for

quantities exceeding these volumes will be reduced in the years

2002, 2003, 2004, 2005 and 2006 to 90 %, 80 %, 70 %, 60 % and 50 %

of the MFN duty rate.

List 3

Quotas and duties applicable upon import into Croatia of goods

originating in the Community

>TABLE POSITION>

Note:

The products listed in this Table shall be subject to concessions

set out below. The volume of the tariff quotas will be increased

annually in the years 2003, 2004, 2005 and 2006 by 10 % of the

volume for 2002. The applicable duty for quantities exceeding these

volumes will be reduced in the years 2002, 2003, 2004, 2005 and 2006

to 90 %, 80 %, 65 %, 55 % and 40 % of the MFN duty rate.

 

 

PROTOCOL 4

concerning the definition of the concept of originating products and

methods of administrative cooperation

 

 

TABLE OF CONTENTS

>TABLE POSITION>

 

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Protocol:

(a) "manufacture" means any kind of working or processing including

assembly or specific operations;

(b) "material" means any ingredient, raw material, component or

part, etc., used in the manufacture of the product;

(c) "product" means the product being manufactured, even if it is

intended for later use in another manufacturing operation;

(d) "goods" means both materials and products;

(e) "customs value" means the value as determined in accordance with

the 1994 Agreement on implementation of Article VII of the General

Agreement on Tariffs and Trade (WTO Agreement on customs valuation);

 

(f) "ex-works price" means the price paid for the product ex works

to the manufacturer in the Community or in Croatia in whose

undertaking the last working or processing is carried out, provided

the price includes the value of all the materials used, minus any

internal taxes which are, or may be, repaid when the product

obtained is exported;

(g) "value of materials" means the customs value at the time of

importation of the non-originating materials used, or, if this is

not known and cannot be ascertained, the first ascertainable price

paid for the materials in the Community or in Croatia;

(h) "value of originating materials" means the value of such

materials as defined in subparagraph (g) applied mutatis mutandis;

(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 Contracting Party or, where the customs value is not

known or cannot be ascertained, the first ascertainable price for

the materials in the Community or Croatia;

(j) "chapters" and "headings" mean the chapters and the headings

(four-digit codes) used in the nomenclature which makes up the

Harmonised Commodity Description and Coding System, referred to in

this Protocol as "the Harmonised System" or "HS";

(k) "classified" refers to the classification of a product or

material under a particular heading;

(l) "consignment" means products which are either sent

simultaneously from one exporter to one consignee or covered by a

single transport document covering their shipment from the exporter

to the consignee or, in the absence of such a document, by a single

invoice;

(m) "territories" includes territorial waters.

 

TITLE II

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2

General requirements

1. For the purpose of implementing this Agreement, the following

products shall be considered as originating in the Community:

(a) products wholly obtained in the Community within the meaning of

Article 5 of this Protocol;

(b) products obtained in the Community incorporating materials which

have not been wholly obtained there, provided that such materials

have undergone sufficient working or processing in the Community

within the meaning of Article 6 of this Protocol.

2. For the purpose of implementing this Agreement, the following

products shall be considered as originating in Croatia:

(a) products wholly obtained in Croatia within the meaning of

Article 5 of this Protocol;

(b) products obtained in Croatia incorporating materials which have

not been wholly obtained there, provided that such materials have

undergone sufficient working or processing in Croatia within the

meaning of Article 6 of this Protocol.

Article 3

Bilateral cumulation in the Community

Materials originating in Croatia shall be considered as materials

originating in the Community when incorporated into a product

obtained there. It shall not be necessary that such materials have

undergone sufficient working or processing, provided they have

undergone working or processing going beyond the operations referred

to in Article 7(1).

 

Article 4

Bilateral cumulation in Croatia

Materials originating in the Community shall be considered as

materials originating in Croatia when incorporated into a product

obtained there. It shall not be necessary that such materials have

undergone sufficient working or processing, provided they have

undergone working or processing going beyond the operations referred

to in Article 7(1).

 

Article 5

Wholly obtained products

1. The following shall be considered as wholly obtained in the

Community or in Croatia:

(a) mineral products extracted from their soil or from their seabed;

 

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained by hunting or fishing conducted there;

(f) products of sea fishing and other products taken from the sea

outside the territorial waters of the Community or Croatia by their

vessels;

(g) products made aboard their factory ships exclusively from

products referred to in subparagraph (f);

(h) used articles collected there fit only for the recovery of raw

materials, including used tyres fit only for retreading or for use

as waste;

(i) waste and scrap resulting from manufacturing operations

conducted there;

(j) products extracted from marine soil or subsoil outside their

territorial waters provided that they have sole rights to work that

soil or subsoil;

(k) goods produced there exclusively from the products specified in

subparagraphs (a) to (j).

2. The terms "their vessels" and "their factory ships" in paragraph

1(f) and (g) shall apply only to vessels and factory ships:

(a) which are registered or recorded in a Member State or in

Croatia;

(b) which sail under the flag of a Member State or of Croatia;

(c) which are owned to an extent of at least 50 % by nationals of

Member States or of Croatia, or by a company with its head office in

one of these States, of which the manager or managers, Chairman of

the Board of Directors or the Supervisory Board, and the majority of

the members of such boards are nationals of Member States or of

Croatia and of which, in addition, in the case of partnerships or

limited companies, at least half the capital belongs to those States

or to public bodies or nationals of the said States;

(d) of which the master and officers are nationals of Member States

or Croatia; and

(e) of which at least 75 % of the crew are nationals of Member

States or Croatia.

 

Article 6

Sufficiently worked or processed products

1. For the purposes of Article 2, products which are not wholly

obtained are considered to be sufficiently worked or processed when

the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered

by this Agreement, the working or processing which must be carried

out on non-originating materials used in manufacturing and apply

only in relation to such materials. Accordingly, it follows that if

a product, which has acquired originating status by fulfilling the

conditions set out in the list, is used in the manufacture of

another product, the conditions applicable to the product in which

it is incorporated do not apply to it, and no account shall be taken

of the non-originating materials which may have been used in its

manufacture.

2. Notwithstanding paragraph 1, non-originating materials which,

according to the conditions set out in the list, should not be used

in the manufacture of a product may nevertheless be used, provided

that:

(a) their total value does not exceed 10 % of the ex-works price of

the product;

(b) any of the percentages given in the list for the maximum value

of non-originating materials are not exceeded through the

application of this paragraph.

This paragraph shall not apply to products falling within Chapters

50 to 63 of the Harmonised System.

3. Paragraphs 1 and 2 shall apply except as provided in Article 7.

 

Article 7

Insufficient working or processing operations

1. Without prejudice to paragraph 2, the following operations shall

be considered as insufficient working or processing to confer the

status of originating products, whether or not the requirements of

Article 6 are satisfied:

(a) preserving operations to ensure that the products remain in good

condition during transport and storage;

(b) breaking-up and assembly of packages;

(c) washing, cleaning; removal of dust, oxide, oil, paint or other

coverings;

(d) ironing or pressing of textiles;

(e) simple painting and polishing operations;

(f) husking, partial or total bleaching, polishing, and glazing of

cereals and rice;

(g) operations to colour sugar or form sugar lumps;

(h) peeling, stoning and shelling of fruits, nuts and vegetables;

(i) sharpening, simple grinding or simple cutting;

(j) sifting, screening, sorting, classifying, grading, matching

(including the making-up of sets of articles);

(k) simple placing in bottles, cans, flasks, bags, cases, boxes,

fixing on cards or boards and all other simple packaging operations;

 

(l) affixing or printing marks, labels, logos and other like

distinguishing signs on products or their packaging;

(m) simple mixing of products, whether or not of different kinds;

(n) simple assembly of parts of articles to constitute a complete

article or disassembly of products into parts;

(o) a combination of two or more operations specified in

subparagraphs (a) to (n);

(p) slaughter of animals.

2. All operations carried out either in the Community or in Croatia

on a given product shall be considered together when determining

whether the working or processing undergone by that product is to be

regarded as insufficient within the meaning of paragraph 1.

 

Article 8

Unit of qualification

1. The unit of qualification for the application of the provisions

of this Protocol shall be the particular product which is considered

as the basic unit when determining classification using the

nomenclature of the Harmonised System.

Accordingly, it follows that:

(a) when a product composed of a group or assembly of articles is

classified under the terms of the Harmonised System in a single

heading, the whole constitutes the unit of qualification;

(b) when a consignment consists of a number of identical products

classified under the same heading of the Harmonised System, each

product must be taken individually when applying the provisions of

this Protocol.

2. Where, under General Rule 5 of the Harmonised System, packaging

is included with the product for classification purposes, it shall

be included for the purposes of determining origin.

 

Article 9

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of

equipment, machine, apparatus or vehicle, which are part of the

normal equipment and included in the price thereof or which are not

separately invoiced, shall be regarded as one with the piece of

equipment, machine, apparatus or vehicle in question.

 

Article 10

Sets

Sets, as defined in General Rule 3 of the Harmonised System, shall

be regarded as originating when all component products are

originating. Nevertheless, when a set is composed of originating and

non-originating products, the set as a whole shall be regarded as

originating, provided that the value of the non-originating products

does not exceed 15 % of the ex-works price of the set.

 

Article 11

Neutral elements

In order to determine whether a product originates, it shall not be

necessary to determine the origin of the following which might be

used in its manufacture:

(a) energy and fuel;

(b) plant and equipment;

(c) machines and tools;

(d) goods which do not enter and which are not intended to enter

into the final composition of the product.

 

TITLE III

TERRITORIAL REQUIREMENTS

Article 12

Principle of territoriality

1. The conditions for acquiring originating status set out in Title

II must continue to be fulfilled at all times in the Community or in

Croatia.

2. If originating goods exported from the Community or from Croatia

to another country are returned, 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 Croatia on materials

exported from the Community or Croatia and subsequently reimported

there, provided:

(a) the said materials are wholly obtained in the Community or

Croatia 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:

(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 Croatia

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 Croatia. 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 Croatia 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 Croatia, 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

and 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 Croatia shall be

done under the outward processing arrangements, or similar

arrangements.

 

Article 13

Direct transport

1. The preferential treatment provided for under the Agreement

applies only to products, satisfying the requirements of this

Protocol, which are transported directly between the Community and

Croatia. However, products constituting one single consignment may

be transported through other territories with, should the occasion

arise, trans-shipment or temporary warehousing in such territories,

provided that they remain under the surveillance of the customs

authorities in the country of transit or warehousing and do not

undergo operations other than unloading, reloading or any operation

designed to preserve them in good condition.

Originating products may be transported by pipeline across territory

other than that of the Community or Croatia.

2. Evidence that the conditions set out in paragraph 1 have been

fulfilled shall be supplied to the customs authorities of the

importing country by the production of:

(a) a single transport document covering the passage from the

exporting country through the country of transit; or

(b) a certificate issued by the customs authorities of the country

of transit:

(i) giving an exact description of the products;

(ii) stating the dates of unloading and reloading of the products

and, where applicable, the names of the ships, or the other means of

transport used; and

(iii) certifying the conditions under which the products remained in

the transit country; or

(c) failing these, any substantiating documents.

 

Article 14

Exhibitions

1. Originating products, sent for exhibition in a country other than

the Community or Croatia shall benefit on importation from the

provisions of the Agreement provided it is shown to the satisfaction

of the customs authorities that:

(a) an exporter has consigned these products from the Community or

Croatia to the country in which the exhibition is held and has

exhibited them there;

(b) the products have been sold or otherwise disposed of by that

exporter to a person in the Community or Croatia;

(c) the products have been consigned during the exhibition or

immediately thereafter in the state in which they were sent for

exhibition; and

(d) the products have not, since they were consigned for exhibition,

been used for any purpose other than demonstration at the

exhibition.

2. A proof of origin must be issued or made out in accordance with

the provisions of Title V and submitted to the customs authorities

of the importing country in the normal manner. The name and address

of the exhibition must be indicated thereon. Where necessary,

additional documentary evidence of the conditions under which they

have been exhibited may be required.

3. Paragraph 1 shall apply to any trade, industrial, agricultural or

crafts exhibition, fair or similar public show or display which is

not organised for private purposes in shops or business premises

with a view to the sale of foreign products, and during which the

products remain under customs control.

 

TITLE IV

DRAWBACK OR EXEMPTION

Article 15

Prohibition of drawback of, or exemption from, customs duties

1. Non-originating materials used in the manufacture of products

originating in the Community or in Croatia, for which a proof of

origin is issued or made out in accordance with the provisions of

Title V shall not be subject in the Community or in Croatia to

drawback of, or exemption from, customs duties of whatever kind.

2. The prohibition in paragraph 1 shall apply to any arrangement for

refund, remission or non-payment, partial or complete, of customs

duties or charges having an equivalent effect, applicable in the

Community or in Croatia to materials used in the manufacture, where

such refund, remission or non-payment applies, expressly or in

effect, when products obtained from the said materials are exported

and not when they are retained for home use there.

3. The exporter of products covered by a proof of origin shall be

prepared to submit at any time, upon request from the customs

authorities, all appropriate documents proving that no drawback has

been obtained in respect of the non-originating materials used in

the manufacture of the products concerned and that all customs

duties or charges having equivalent effect applicable to such

materials have actually been paid.

4. The provisions of paragraphs 1 to 3 shall also apply in respect

of packaging within the meaning of Article 8(2), accessories, spare

parts and tools within the meaning of Article 9 and products in a

set within the meaning of Article 10 when such items are

non-originating.

5. The provisions of paragraphs 1 to 4 shall apply only in respect

of materials which are of the kind to which the Agreement applies.

Furthermore, they shall not preclude the application of an export

refund system for agricultural products, applicable upon export in

accordance with the provisions of the Agreement.

6. Notwithstanding paragraph 1, Croatia may apply arrangements for

drawback of, or exemption from, customs duties or charges having an

equivalent effect, applicable to materials used in the manufacture

of originating products, subject to the following provisions:

(a) a 5 % rate of customs charge shall be retained in respect of

products falling within Chapters 25 to 49 and 64 to 97 of the

Harmonised System, or such lower rate as is in force in Croatia;

(b) a 10 % rate of customs charge shall be retained in respect of

products falling within Chapters 50 to 63 of the Harmonised System,

or such lower rate as is in force in Croatia.

7. The provisions of this Article shall apply from 1 January 2003.

The provisions of paragraph 6 shall apply until 31 December 2005 and

may be reviewed by common accord.

 

TITLE V

PROOF OF ORIGIN

Article 16

General requirements

1. Products originating in the Community shall, on importation into

Croatia and products originating in Croatia shall, on importation

into the Community, benefit from this Agreement upon submission of

either:

(a) a movement certificate EUR.1, a specimen of which appears in

Annex III, or

(b) in the cases specified in Article 21 (1), a declaration, the

text of which appears in Annex IV, given by the exporter on an

invoice, a delivery note or any other commercial document which

describes the products concerned in sufficient detail to enable them

to be identified (hereinafter referred to as the "invoice

declaration").

2. Notwithstanding paragraph 1, originating products within the

meaning of this Protocol shall, in the cases specified in Article

26, benefit from this Agreement without it being necessary to submit

any of the documents referred to above.

 

Article 17

Procedure for the issue of a movement certificate EUR.1

1. A movement certificate EUR.1 shall be issued by the customs

authorities of the exporting country on application having been made

in writing by the exporter or, under the exporter's responsibility,

by his authorised representative.

2. For this purpose, the exporter or his authorised representative

shall fill out both the movement certificate EUR.1 and the

application form, specimens of which appear in Annex III. These

forms shall be completed in one of the languages in which this

Agreement is drawn up and in accordance with the provisions of the

domestic law of the exporting country. If they are handwritten, they

shall be completed in ink in printed characters. The description of

the products must be given in the box reserved for this purpose

without leaving any blank lines. Where the box is not completely

filled, a horizontal line must be drawn below the last line of the

description, the empty space being crossed through.

3. The exporter applying for the issue of a movement certificate

EUR.1 shall be prepared to submit at any time, at the request of the

customs authorities of the exporting country where the movement

certificate EUR.1 is issued, all appropriate documents proving the

originating status of the products concerned as well as the

fulfilment of the other requirements of this Protocol.

4. A movement certificate EUR.1 shall be issued by the customs

authorities of a Member State or Croatia if the products concerned

can be considered as products originating in the Community or in

Croatia and fulfil the other requirements of this Protocol.

5. The issuing customs authorities shall take any steps necessary to

verify the originating status of the products and the fulfilment of

the other requirements of this Protocol. For this purpose, they

shall have the right to call for any evidence and to carry out any

inspection of the exporter's accounts or any other check considered

appropriate. The issuing customs authorities shall also ensure that

the forms referred to in paragraph 2 are duly completed. In

particular, they shall check whether the space reserved for the

description of the products has been completed in such a manner as

to exclude all possibility of fraudulent additions.

6. The date of issue of the movement certificate EUR.1 shall be

indicated in box 11 of the certificate.

7. A movement certificate EUR.1 shall be issued by the customs

authorities and made available to the exporter as soon as actual

exportation has been effected or ensured.

 

Article 18

Movement certificates EUR.1 issued retrospectively

1. Notwithstanding Article 17(7), a movement certificate EUR.1 may

exceptionally be issued after exportation of the products to which

it relates if:

(a) it was not issued at the time of exportation because of errors

or involuntary omissions or special circumstances; or

(b) it is demonstrated to the satisfaction of the customs

authorities that a movement certificate EUR.1 was issued but was not

accepted at importation for technical reasons.

2. For the implementation of paragraph 1, the exporter must indicate

in his application the place and date of exportation of the products

to which the movement certificate EUR.1 relates, and state the

reasons for his request.

3. The customs authorities may issue a movement certificate EUR.1

retrospectively only after verifying that the information supplied

in the exporter's application agrees with that in the corresponding

file.

4. Movement certificates EUR.1 issued retrospectively must be

endorsed with one of the following phrases:

"EXPEDIDO A POSTERIORI", "UDSTEDT EFTERFŲLGENDE", "NACHTRÄGLICH

AUSGESTELLT", ">ISO_7>ÅŹÄĻČÅĶ ÅŹ ŌŁĶ ÕÓŌÅŃŁĶ", ">ISO_1>ISSUED

RETROSPECTIVELY", "DÉLIVRÉ A POSTERIORI", "RILASCIATO A POSTERIORI",

"AFGEGEVEN A POSTERIORI", "EMITIDO A POSTERIORI", "ANNETTU

JÄLKIKÄTEEN", "UTFÄRDAT I EFTERHAND", "NAKNADNO IZDANO".

5. The endorsement referred to in paragraph 4 shall be inserted in

the "Remarks" box of the movement certificate EUR.1.

 

Article 19

Issue of a duplicate movement certificate EUR.1

1. In the event of theft, loss or destruction of a movement

certificate EUR.1, the exporter may apply to the customs authorities

which issued it for a duplicate made out on the basis of the export

documents in their possession.

2. The duplicate issued in this way must be endorsed with one of the

following words:

"DUPLICADO", "DUPLIKAT", ">ISO_7>ĮĶŌÉĆŃĮÖĻ", ">ISO_1>DUPLICATE",

"DUPLICATA", "DUPLICATO", "DUPLICAAT", "SEGUNDA VIA",

"KAKSOISKAPPALE".

3. The endorsement referred to in paragraph 2 shall be inserted in

the "Remarks" box of the duplicate movement certificate EUR.1.

4. The duplicate, which must bear the date of issue of the original

movement certificate EUR.1, shall take effect as from that date.

 

Article 20

Issue of movement certificates EUR.1 on the basis of a proof of

origin issued or made out previously

When originating products are placed under the control of a customs

office in the Community or in Croatia, it shall be possible to

replace the original proof of origin by one or more movement

certificates EUR.1 for the purpose of sending all or some of these

products elsewhere within the Community or in Croatia. The

replacement movement certificate(s) EUR.1 shall be issued by the

customs office under whose control the products are placed.

 

Article 21

Conditions for making out an invoice declaration

1. An invoice declaration as referred to in Article 16 (1) (b) may

be made out:

(a) by an approved exporter within the meaning of Article 22; or

(b) by any exporter for any consignment consisting of one or more

packages containing originating products whose total value does not

exceed EUR 6000.

2. An invoice declaration may be made out if the products concerned

can be considered as products originating in the Community or in

Croatia and fulfil the other requirements of this Protocol.

3. The exporter making out an invoice declaration shall be prepared

to submit at any time, at the request of the customs authorities of

the exporting country, all appropriate documents proving the

originating status of the products concerned as well as the

fulfilment of the other requirements of this Protocol.

4. An invoice declaration shall be made out by the exporter by

typing, stamping or printing on the invoice, the delivery note or

another commercial document, the declaration, the text of which

appears in Annex IV, using one of the linguistic versions set out in

that Annex and in accordance with the provisions of the domestic law

of the exporting country. If the declaration is handwritten, it

shall be written in ink in printed characters.

5. Invoice declarations shall bear the original signature of the

exporter in manuscript. However, an approved exporter within the

meaning of Article 22 shall not be required to sign such

declarations provided that he gives the customs authorities of the

exporting country a written undertaking that he accepts full

responsibility for any invoice declaration which identifies him as

if it had been signed in manuscript by him.

6. An invoice declaration may be made out by the exporter when the

products to which it relates are exported, or after exportation on

condition that it is presented in the importing country no longer

than two years after the importation of the products to which it

relates.

 

Article 22

Approved exporter

1. The customs authorities of the exporting country may authorise

any exporter (hereinafter referred to as "approved exporter") who

makes frequent shipments of products under this Agreement to make

out invoice declarations irrespective of the value of the products

concerned. An exporter seeking such authorisation must offer to the

satisfaction of the customs authorities all guarantees necessary to

verify the originating status of the products as well as the

fulfilment of the other requirements of this Protocol.

2. The customs authorities may grant the status of approved exporter

subject to any conditions which they consider appropriate.

3. The customs authorities shall grant to the approved exporter a

customs authorisation number which shall appear on the invoice

declaration.

4. The customs authorities shall monitor the use of the

authorisation by the approved exporter.

5. The customs authorities may withdraw the authorisation at any

time. They shall do so where the approved exporter no longer offers

the guarantees referred to in paragraph 1, does not fulfil the

conditions referred to in paragraph 2 or otherwise makes an

incorrect use of the authorisation.

 

Article 23

Validity of proof of origin

1. A proof of origin shall be valid for four months from the date of

issue in the exporting country, and must be submitted within the

said period to the customs authorities of the importing country.

2. Proofs of origin which are submitted to the customs authorities

of the importing country after the final date for presentation

specified in paragraph 1 may be accepted for the purpose of applying

preferential treatment, where the failure to submit these documents

by the final date set is due to exceptional circumstances.

3. In other cases of belated presentation, the customs authorities

of the importing country may accept the proofs of origin where the

products have been submitted before the said final date.

 

Article 24

Submission of proof of origin

Proofs of origin shall be submitted to the customs authorities of

the importing country in accordance with the procedures applicable

in that country. The said authorities may require a translation of a

proof of origin and may also require the import declaration to be

accompanied by a statement from the importer to the effect that the

products meet the conditions required for the implementation of the

Agreement.

 

Article 25

Importation by instalments

Where, at the request of the importer and on the conditions laid

down by the customs authorities of the importing country, dismantled

or non-assembled products within the meaning of General Rule 2(a) of

the Harmonised System falling within Sections XVI and XVII or

heading Nos 7308 and 9406 of the Harmonised System are imported by

instalments, a single proof of origin for such products shall be

submitted to the customs authorities upon importation of the first

instalment.

 

Article 26

Exemptions from proof of origin

1. Products sent as small packages from private persons to private

persons or forming part of travellers' personal luggage shall be

admitted as originating products without requiring the submission of

a proof of origin, provided that such products are not imported by

way of trade and have been declared as meeting the requirements of

this Protocol and where there is no doubt as to the veracity of such

a declaration. In the case of products sent by post, this

declaration can be made on the customs declaration CN22/CN23 or on a

sheet of paper annexed to that document.

2. Imports which are occasional and consist solely of products for

the personal use of the recipients or travellers or their families

shall not be considered as imports by way of trade if it is evident

from the nature and quantity of the products that no commercial

purpose is in view.

3. Furthermore, the total value of these products shall not exceed

EUR 500 in the case of small packages or EUR 1200 in the case of

products forming part of travellers' personal luggage.

 

Article 27

Supporting documents

The documents referred to in Articles 17(3) and 21(3) used for the

purpose of proving that products covered by a movement certificate

EUR.1 or an invoice declaration can be considered as products

originating in the Community or in Croatia and fulfil the other

requirements of this Protocol may consist inter alia of the

following:

(a) direct evidence of the processes carried out by the exporter or

supplier to obtain the goods concerned, contained for example in his

accounts or internal bookkeeping;

(b) documents proving the originating status of materials used,

issued or made out in the Community or in Croatia where these

documents are used in accordance with domestic law;

(c) documents proving the working or processing of materials in the

Community or in Croatia, issued or made out in the Community or in

Croatia, where these documents are used in accordance with domestic

law;

(d) movement certificates EUR.1 or invoice declarations proving the

originating status of materials used, issued or made out in the

Community or in Croatia in accordance with this Protocol.

 

Article 28

Preservation of proof of origin and supporting documents

1. The exporter applying for the issue of a movement certificate

EUR.1 shall keep for at least three years the documents referred to

in Article 17(3).

2. The exporter making out an invoice declaration shall keep for at

least three years a copy of this invoice declaration as well as the

documents referred to in Article 21(3).

3. The customs authorities of the exporting country issuing a

movement certificate EUR.1 shall keep for at least three years the

application form referred to in Article 17(2).

4. The customs authorities of the importing country shall keep for

at least three years the movement certificates EUR.1 and the invoice

declarations submitted to them.

 

Article 29

Discrepancies and formal errors

1. The discovery of slight discrepancies between the statements made

in the proof of origin and those made in the documents submitted to

the customs office for the purpose of carrying out the formalities

for importing the products shall not ipso facto render the proof of

origin null and void if it is duly established that this document

does correspond to the products submitted.

2. Obvious formal errors such as typing errors on a proof of origin

should not cause this document to be rejected if these errors are

not such as to create doubts concerning the correctness of the

statements made in this document.

 

Article 30

Amounts expressed in euro

1. For the application of the provisions of Article 21(1)(b) and

Article 26(3) in cases where products are invoiced in a currency

other than euro, amounts in the national currencies of the Member

States or Croatia equivalent to the amounts expressed in euro shall

be fixed annually by each of the countries concerned.

2. A consignment shall benefit from the provisions of Article

21(1)(b) or Article 26(3) by reference to the currency in which the

invoice is drawn up, according to the amount fixed by the Community

or Croatia.

3. The amounts to be used in any given national currency shall be

the equivalent in that currency of the amounts expressed in euro as

at the first working day of October. The amounts shall be

communicated to the Commission of the European Communities by 15

October and shall apply from 1 January the following year. The

Commission of the European Communities shall notify Croatia of the

relevant amounts.

4. Croatia may round up or down the amount resulting from the

conversion into its national currency of an amount expressed in

euro. The rounded-off amount may not differ from the amount

resulting from the conversion by more than 5 %. Croatia may retain

unchanged its national currency equivalent of an amount expressed in

euro if, at the time of the annual adjustment provided for in

paragraph 3, the conversion of that amount, prior to any

rounding-off, results in an increase of less that 15 % in the

national currency equivalent. The national currency equivalent may

be retained unchanged if the conversion would result in a decrease

in that equivalent value.

5. The amounts expressed in euro shall be reviewed by the Interim

Committee at the request of the Community or Croatia. When carrying

out this review, the Interim Committee shall consider the

desirability of preserving the effects of the limits concerned in

real terms. For this purpose, it may decide to modify the amounts

expressed in euro.

 

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31

Mutual assistance

1. The customs authorities of the Member States and of Croatia shall

provide each other, through the Commission of the European

Communities, with specimen impressions of stamps used in their

customs offices for the issue of movement certificates EUR.1 and

with the addresses of the customs authorities responsible for

verifying those certificates and invoice declarations.

2. In order to ensure the proper application of this Protocol, the

Community and Croatia shall assist each other, through the competent

customs administrations, in checking the authenticity of the

movement certificates EUR.1 or the invoice declarations and the

correctness of the information given in these documents.

 

Article 32

Verification of proofs of origin

1. Subsequent verifications of proofs of origin shall be carried out

at random or whenever the customs authorities of the importing

country have reasonable doubts as to the authenticity of such

documents, the originating status of the products concerned or the

fulfilment of the other requirements of this Protocol.

2. For the purposes of implementing the provisions of paragraph 1,

the customs authorities of the importing country shall return the

movement certificate EUR.1 and the invoice, if it has been

submitted, the invoice declaration, or a copy of these documents, to

the customs authorities of the exporting country giving, where

appropriate, the reasons for the enquiry. Any documents and

information obtained suggesting that the information given on the

proof or origin is incorrect shall be forwarded in support of the

request for verification.

3. The verification shall be carried out by the customs authorities

of the exporting country. For this purpose, they shall have the

right to call for any evidence and to carry out any inspection of

the exporter's accounts or any other check considered appropriate.

4. If the customs authorities of the importing country decide to

suspend the granting of preferential treatment to the products

concerned while awaiting the results of the verification, release of

the products shall be offered to the importer subject to any

precautionary measures judged necessary.

5. The customs authorities requesting the verification shall be

informed of the results of this verification as soon as possible.

These results must indicate clearly whether the documents are

authentic and whether the products concerned can be considered as

products originating in the Community or in Croatia and fulfil the

other requirements of this Protocol. Where the cumulation provisions

in accordance with Articles 3 and 4 of this Protocol were applied

and in connection with Article 17(3), the reply shall include a copy

(copies) of the movement certificate(s) or invoice declaration(s)

relied upon.

6. If in cases of reasonable doubt there is no reply within 10

months of the date of the verification request or if the reply does

not contain sufficient information to determine the authenticity of

the document in question or the real origin of the products, the

requesting customs authorities shall, except in exceptional

circumstances, refuse entitlement to the preferences.

 

Article 33

Dispute settlement

Where disputes arise in relation to the verification procedures of

Article 32 which cannot be settled between the customs authorities

requesting a verification and the customs authorities responsible

for carrying out this verification or where they raise a question as

to the interpretation of this Protocol, they shall be submitted to

the Interim Committee.

In all cases the settlement of disputes between the importer and the

customs authorities of the importing country shall be under the

legislation of the said country.

 

Article 34

Penalties

Penalties shall be imposed on any person who draws up, or causes to

be drawn up, a document which contains incorrect information for the

purpose of obtaining a preferential treatment for products.

 

Article 35

Free zones

1. The Community and Croatia shall take all necessary steps to

ensure that products traded under cover of a proof of origin which

in the course of transport use a free zone situated in their

territory are not substituted by other goods and do not undergo

handling other than normal operations designed to prevent their

deterioration.

2. By means of an exemption to the provisions contained in paragraph

1, when products originating in the Community or in Croatia are

imported into a free zone under cover of a proof of origin and

undergo treatment or processing, the authorities concerned shall

issue a new EUR.1 certificate at the exporter's request, if the

treatment or processing undergone is in conformity with the

provisions of this Protocol.

 

TITLE VII

CEUTA AND MELILLA

Article 36

Application of the Protocol

1. The term "Community" used in Article 2 does not cover Ceuta and

Melilla.

2. Products originating in Croatia, when imported into Ceuta or

Melilla, shall enjoy in all respects the same customs regime as that

which is applied to products originating in the customs territory of

the Community under Protocol 2 of the Act of Accession of the

Kingdom of Spain and the Portuguese Republic to the European

Communities. Croatia shall grant to imports of products covered by

the Agreement and originating in Ceuta and Melilla the same customs

regime as that which is granted to products imported from and

originating in the Community.

3. For the purpose of the application of paragraph 2 concerning

products originating in Ceuta and Melilla, this Protocol shall apply

mutatis mutandis subject to the special conditions set out in

Article 37.

 

Article 37

Special conditions

1. Providing they have been transported directly in accordance with

the provisions of Article 13, the following shall be considered as:

(1) products originating in Ceuta and Melilla:

(a) products wholly obtained in Ceuta and Melilla;

(b) products obtained in Ceuta and Melilla in the manufacture of

which products other than those referred to in (a) are used,

provided that:

(i) the said products have undergone sufficient working or

processing within the meaning of Article 6 of this Protocol; or that

(ii) those products are originating in Croatia or the Community

within the meaning of this Protocol, provided that they have been

submitted to working or processing which goes beyond the

insufficient working or processing referred to in Article 7(1).

(2) products originating in Croatia:

(a) products wholly obtained in Croatia;

(b) products obtained in Croatia, in the manufacture of which

products other than those referred to in (a) are used, provided

that:

(i) the said products have undergone sufficient working or

processing within the meaning of Article 6 of this Protocol; or that

(ii) those products are originating in Ceuta and Melilla or the

Community within the meaning of this Protocol, provided that they

have been submitted to working or processing which goes beyond the

insufficient working or processing referred to in Article 7(1).

2. Ceuta and Melilla shall be considered as a single territory.

3. The exporter or his authorised representative shall enter

"Croatia" and "Ceuta and Melilla" in box 2 of movement certificates

EUR.1 or on invoice declarations. In addition, in the case of

products originating in Ceuta and Melilla, this shall be indicated

in box 4 of movement certificates EUR.1 or on invoice declarations.

4. The Spanish customs authorities shall be responsible for the

application of this Protocol in Ceuta and Melilla.

 

TITLE VIII

FINAL PROVISIONS

Article 38

Amendments to the Protocol

The Interim Committee may decide to amend the provisions of this

Protocol.

 

 

 

 

ANNEX I

 

INTRODUCTORY NOTES TO THE LIST IN ANNEX II

Note 1

The list sets out the conditions required for all products to be

considered as sufficiently worked or processed within the meaning of

Article 6.

Note 2

2.1. The first two columns in the list describe the product

obtained. The first column gives the heading number or chapter

number used in the Harmonised System and the second column gives the

description of goods used in that system for that heading or

chapter. For each entry in the first two columns a rule is specified

in column 3 or 4. Where, in some cases, the entry in the first

column is preceded by an "ex", this signifies that the rules in

column 3 or 4 apply only to the part of that heading as described in

column 2.

2.2. Where several heading numbers are grouped together in column 1

or a chapter number is given and the description of products in

column 2 is therefore given in general terms, the adjacent rules in

column 3 or 4 apply to all products which, under the Harmonised

System, are classified in headings of the chapter or in any of the

headings grouped together in column 1.

2.3. Where there are different rules in the list applying to different products within a heading, each indent contains the

description of that part of the heading covered by the adjacent

rules in column 3 or 4.

2.4. Where, for an entry in the first two columns, a rule is

specified in both columns 3 and 4, the exporter may opt, as an

alternative, to apply either the rule set out in column 3 or that

set out in column 4. If no origin rule is given in column 4, the

rule set out in column 3 has to be applied.

Note 3

3.1. The provisions of Article 6, concerning products having

acquired originating status which are used in the manufacture of

other products, shall apply, regardless of whether this status has

been acquired inside the factory where these products are used or in

another factory in Croatia or in the Community.

Example:

An engine of heading No 8407, for which the rule states that the

value of the non-originating materials which may be incorporated may

not exceed 40 % of the ex-works price, is made from "other alloy

steel roughly shaped by forging" of heading No ex 7224.

If this forging has been forged in Croatia from a non-originating

ingot, it has already acquired originating status by virtue of the

rule for heading No ex 7224 in the list. The forging can then count

as originating in the value-calculation for the engine, regardless

of whether it was produced in the same factory or in another factory

in Croatia. The value of the non-originating ingot is thus not taken

into account when adding up the value of the non-originating

materials used.

3.2. The rule in the list represents the minimum amount of working

or processing required, and the carrying-out of more working or

processing also confers originating status; conversely, the

carrying-out of less working or processing cannot confer originating

status. Thus, if a rule provides that non-originating material, at a

certain level of manufacture, may be used, the use of such material

at an earlier stage of manufacture is allowed, and the use of such

material at a later stage is not.

3.3. Without prejudice to Note 3.2, where a rule states that

"materials of any heading" may be used, materials of the same

heading as the product may also be used, subject, however, to any

specific limitations which may also be contained in the rule.

However, the expression "manufacture from materials of any heading,

including other materials of heading No ..." means that only

materials classified in the same heading as the product and of a

different description than that of the product as given in column 2

of the list may be used.

3.4. When a rule in the list specifies that a product may be

manufactured from more than one material, this means that one or

more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of headings Nos 5208 to 5212 provides that

natural fibres may be used and that chemical materials, among other

materials, may also be used. This does not mean that both have to be

used; it is possible to use one or the other, or both.

3.5. Where a rule in the list specifies that a product must be

manufactured from a particular material, the condition obviously

does not prevent the use of other materials which, because of their

inherent nature, cannot satisfy the rule. (See also Note 6.2 below

in relation to textiles).

Example:

The rule for prepared foods of heading No 1904, which specifically

excludes the use of cereals and their derivatives, does not prevent

the use of mineral salts, chemicals and other additives which are

not products from cereals.

However, this does not apply to products which, although they cannot

be manufactured from the particular materials specified in the list,

can be produced from a material of the same nature at an earlier

stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from

non-woven materials, if the use of only non-originating yarn is

allowed for this class of article, it is not possible to start from

non-woven cloth - even if non-woven cloths cannot normally be made

from yarn. In such cases, the starting material would normally be at

the stage before yarn - that is, the fibre stage.

3.6. Where, in a rule in the list, two percentages are given for the

maximum value of non-originating materials that can be used, then

these percentages may not be added together. In other words, the

maximum value of all the non-originating materials used may never

exceed the higher of the percentages given. Furthermore, the

individual percentages must not be exceeded, in relation to the

particular materials to which they apply.

Note 4

4.1. The term "natural fibres" is used in the list to refer to

fibres other than artificial or synthetic fibres. It is restricted

to the stages before spinning takes place, including waste, and,

unless otherwise specified, includes fibres which have been carded,

combed or otherwise processed, but not spun.

4.2. The term "natural fibres" includes horsehair of heading No

0503, silk of headings Nos 5002 and 5003, as well as wool-fibres and

fine or coarse animal hair of headings Nos 5101 to 5105, cotton

fibres of headings Nos 5201 to 5203, and other vegetable fibres of

headings Nos 5301 to 5305.

4.3. The terms "textile pulp", "chemical materials" and

"paper-making materials" are used in the list to describe the

materials, not classified in Chapters 50 to 63, which can be used to

manufacture artificial, synthetic or paper fibres or yarns.

4.4. The term "man-made staple fibres" is used in the list to refer

to synthetic or artificial filament tow, staple fibres or waste, of

headings Nos 5501 to 5507.

Note 5

5.1. Where, for a given product in the list, reference is made to

this Note, the conditions set out in column 3 shall not be applied

to any basic textile materials used in the manufacture of this

product and which, taken together, represent 10 % or less of the

total weight of all the basic textile materials used. (See also

Notes 5.3 and 5.4 below).

5.2. However, the tolerance mentioned in Note 5.1 may be applied

only to mixed products which have been made from two or more basic

textile materials.

The following are the basic textile materials:

- silk,

- wool,

- coarse animal hair,

- fine animal hair,

- horsehair,

- cotton,

- paper-making materials and paper,

- flax,

- true hemp,

- jute and other textile bast fibres,

- sisal and other textile fibres of the genus Agave,

- coconut, abaca, ramie and other vegetable textile fibres,

- synthetic man-made filaments,

- artificial man-made filaments,

- current-conducting filaments,

- synthetic man-made staple fibres of polypropylene,

- synthetic man-made staple fibres of polyester,

- synthetic man-made staple fibres of polyamide,

- synthetic man-made staple fibres of polyacrylonitrile,

- synthetic man-made staple fibres of polyimide,

- synthetic man-made staple fibres of polytetrafluoroethylene,

- synthetic man-made staple fibres of polyphenylene sulphide,

- synthetic man-made staple fibres of polyvinyl chloride,

- other synthetic man-made staple fibres,

- artificial man-made staple fibres of viscose,

- other artificial man-made staple fibres,

- yarn made of polyurethane segmented with flexible segments of

polyether, whether or not gimped,

- yarn made of polyurethane segmented with flexible segments of

polyester, whether or not gimped,

- products of heading No 5605 (metallised yarn) incorporating strip

consisting of a core of aluminium foil or of a core of plastic film

whether or not coated with aluminium powder, of a width not

exceeding 5 mm, sandwiched by means of a transparent or coloured

adhesive between two layers of plastic film,

- other products of heading No 5605.

Example:

A yarn, of heading No 5205, made from cotton fibres of heading No

5203 and synthetic staple fibres of heading No 5506, is a mixed

yarn. Therefore, non-originating synthetic staple fibres which do

not satisfy the origin-rules (which require manufacture from

chemical materials or textile pulp) may be used up to a weight of 10

% of the yarn.

Example:

A woollen fabric, of heading No 5112, made from woollen yarn of

heading No 5107 and synthetic yarn of staple fibres of heading No

5509, is a mixed fabric. Therefore, synthetic yarn which does not

satisfy the origin-rules (which require manufacture from chemical

materials or textile pulp), or woollen yarn which does not satisfy

the origin-rules (which require manufacture from natural fibres, not

carded or combed or otherwise prepared for spinning), or a

combination of the two, may be used provided their total weight does

not exceed 10 % of the weight of the fabric.

Example:

Tufted textile fabric, of heading No 5802, made from cotton yarn of

heading No 5205 and cotton fabric of heading No 5210, is only a

mixed product if the cotton fabric is itself a mixed fabric made

from yarns classified in two separate headings, or if the cotton

yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton

yarn of heading No 5205 and synthetic fabric of heading No 5407,

then, obviously, the yarns used are two separate basic textile

materials and the tufted textile fabric is, accordingly, a mixed

product.

5.3. In the case of products incorporating "yarn made of

polyurethane segmented with flexible segments of polyether, whether

or not gimped", this tolerance is 20 % in respect of this yarn.

5.4. In the case of products incorporating "strip consisting of a

core of aluminium foil or of a core of plastic film whether or not

coated with aluminium powder, of a width not exceeding 5 mm,

sandwiched by means of an adhesive between two layers of plastic

film", this tolerance is 30 % in respect of this strip.

Note 6

6.1. Where, in the list, reference is made to this Note, textile

materials (with the exception of linings and interlinings), which do

not satisfy the rule set out in the list in column 3 for the made-up

product concerned, may be used, provided that they are classified in

a heading other than that of the product and that their value does

not exceed 8 % of the ex-works price of the product.

6.2. Without prejudice to Note 6.3, materials, which are not

classified within Chapters 50 to 63, may be used freely in the

manufacture of textile products, whether or not they contain

textiles.

Example:

If a rule in the list provides that, for a particular textile item

(such as trousers), yarn must be used, this does not prevent the use

of metal items, such as buttons, because buttons are not classified

within Chapters 50 to 63. For the same reason, it does not prevent

the use of slide-fasteners, even though slide-fasteners normally

contain textiles.

6.3. Where a percentage-rule applies, the value of materials which

are not classified within Chapters 50 to 63 must be taken into

account when calculating the value of the non-originating materials

incorporated.

Note 7

7.1. For the purposes of headings Nos ex 2707, 2713 to 2715, ex

2901, ex 2902 and ex 3403, the "specific processes" are the

following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process(1);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations:

processing with concentrated sulphuric acid, oleum or sulphuric

anhydride; neutralisation with alkaline agents; decolourisation and

purification with naturally-active earth, activated earth, activated

charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation.

7.2. For the purposes of headings Nos 2710, 2711 and 2712, the

"specific processes" are the following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process(2);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations:

processing with concentrated sulphuric acid, oleum or sulphuric

anhydride; neutralisation with alkaline agents; decolourisation and

purification with naturally-active earth, activated earth, activated

charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(ij) isomerisation;

(k) in respect of heavy oils of heading No ex 2710 only,

desulphurisation with hydrogen, resulting in a reduction of at least

85 % of the sulphur-content of the products processed (ASTM D

1266-59 T method);

(l) in respect of products of heading No 2710 only, deparaffining by

a process other than filtering;

(m) in respect of heavy oils of heading No ex 2710 only, treatment

with hydrogen, at a pressure of more than 20 bar and a temperature

of more than 250 °C, with the use of a catalyst, other than to

effect desulphurization, when the hydrogen constitutes an active

element in a chemical reaction. The further treatment, with

hydrogen, of lubricating oils of heading No ex 2710 (e.g.

hydrofinishing or decolourisation), in order, more especially, to

improve colour or stability shall not, however, be deemed to be a

specific process;

(n) in respect of fuel oils of heading No ex 2710 only, atmospheric

distillation, on condition that less than 30 % of these products

distils, by volume, including losses, at 300 °C, by the ASTM D 86

method;

(o) in respect of heavy oils other than gas oils and fuel oils of

heading No ex 2710 only, treatment by means of a high-frequency

electrical brush-discharge.

7.3. For the purposes of headings Nos ex 2707, 2713 to 2715, ex

2901, ex 2902 and ex 3403, simple operations, such as cleaning,

decanting, desalting, water-separation, filtering, colouring,

marking, obtaining a sulphur-content as a result of mixing products

with different sulphur-contents, or any combination of these

operations or like operations, do not confer origin.

 

(1) See Additional Explanatory Note 4(b) to Chapter 27 of the

Combined Nomenclature.

(2) See Additional Explanatory Note 4(b) to Chapter 27 of the

Combined Nomenclature.

 

 

ANNEX II

 

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON

NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN

OBTAIN ORIGINATING STATUS

>TABLE POSITION>

 

 

ANNEX III

 

MOVEMENT CERTIFICATE EUR.1 AND APPLICATION FOR A MOVEMENT

CERTIFICATE EUR.1

1. Each form shall measure 210 × 297 mm; a tolerance of up to minus

5 mm or plus 8 mm in the length may be allowed. The paper used must

be white, sized for writing, not containing mechanical pulp and

weighting not less than 25 g/m2. It shall have a printed green

guilloche pattern background making any falsification by mechanical

or chemical means apparent to the eye.

2. The competent authorities of the parties may reserve the right to

print the forms themselves or may have them printed by approved

printers. In the latter case, each form must include a reference to

such approval. Each form must bear the name and address of the

printer or a mark by which the printer can be identified. It shall

also bear a serial number, either printed or not, by which it can be

identified.

>PIC FILE= "L_2001330EN.019301.TIF">

>PIC FILE= "L_2001330EN.019401.TIF">

>PIC FILE= "L_2001330EN.019501.TIF">

>PIC FILE= "L_2001330EN.019601.TIF">

 

 

ANNEX IV

 

INVOICE DECLARATION

The invoice declaration, the text of which is given below, must be

made out in accordance with the footnotes. However, the footnotes do

not have to be reproduced.

Spanish Version

El exportador de los productos incluidos en el presente documento

(autorizaciėn aduanera n°.(1)) declara que, salvo indicaciėn en

sentido contrario, estos productos gozan de un origen preferencial

...(2).

Danish Version

EksportŲren af varer, der er omfattet af nörvörende dokument

(toldmyndighedernes tilladelse nr. ...(3)), erklörer, at varerne,

medmindre andet tydeligt er angivet, har pröferenceoprindelse i

...(4).

German Version

Der AusfŽhrer (Ermōchtigter AusfŽhrer; Bewilligungs-Nr. ...(5)) der

Waren, auf die sich dieses Handelspapier bezieht, erklōrt, dass

diese Waren, soweit nicht anderes angegeben, prōferenzbegŽnstigte

...(6) Ursprungswaren sind.

Greek Version

>ISO_7>Ļ õžńóųóąńĖ Įųż Ęę˙ŪŽżĮųż Ę˙į śńūžĘĮ˙żĮńł ńĘŽ Į˙ Ęńꎿ

ąóóęńŠ˙ (Ąōõłń Įõūųżõč˙į įĘ'ńęłų. ...(7)) ō÷ūžżõł ŽĮł, õśĮŽĖ õĄż

ō÷ūžżõĮńł ėńŠžĖ ĄūūųĖ, Įń Ęę˙ŪŽżĮń ńįĮĄ õčżńł Ęę˙Įłü÷ėłńśČĖ

śńĮńóųóČĖ ...(8).

>ISO_1>English Version

The exporter of the products covered by this document (customs

authorisation No ...(9)) declares that, except where otherwise

clearly indicated, these products are of ...(10) preferential

origin.

French Version

L'exportateur des produits couverts par le prłsent document

(autorisation douaniųre n° ...(11)) dłclare que, sauf indication

claire du contraire, ces produits ont l'origine prłfłrentielle

...(12).

Italian Version

L'esportatore delle merci contemplate nel presente documento

(autorizzazione doganale n. ...(13)) dichiara che, salvo indicazione

contraria, le merci sono di origine preferenziale ...(14).

Dutch Version

De exporteur van de goederen waarop dit document van toepassing is

(douanevergunning nr. ...(15)), verklaart dat, behoudens

uitdrukkelijke andersluidende vermelding, deze goederen van

preferentiūle ... oorsprong zijn(16).

Portuguese Version

O abaixo assinado, exportador dos produtos cobertos pelo presente

documento (autoriza÷óo aduaneira n°. ...(17)), declara que, salvo

expressamente indicado em contrńrio, estes produtos sóo de origem

preferencial ...(18).

Finnish Version

Tōssō asiakirjassa mainittujen tuotteiden viejō (tullin lupa n:o

...(19)) ilmoittaa, ettō nōmō tuotteet ovat, ellei toisin ole

selvōsti merkitty, etuuskohteluun oikeutettuja ...

alkuperōtuotteita(20).

Swedish Version

ExportŠren av de varor som omfattas av detta dokument

(tullmyndighetens tillstõnd nr. ...(21)) fŠrsōkrar att dessa varor,

om inte annat tydligt markerats, har fŠrmõnsberōttigande

...(22)ursprung.

Croatian version

Izvoznik proizvoda obuhvaöenih ovom ispravom (carinsko ovlastenje br

...(23)izjavljuje da su, osim ako je to drukųije izriųito navedeno,

ovi proizvodi ...(24)) preferencijalnog podrijetla.

...(25)

(Place and date)

...(26)

(Signature of the exporter, in addition the name of the person

signing the declaration has to be indicated in clear script)

 

(1) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(2) Origin of products to be indicated. When the invoice declaration

relates, in whole or in part, to products originating in Ceuta and

Mellila, the exporter must clearly indicate them in the document on

which the declaration is made out by means of the symbol "CM".

(3) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(4) Origin of products to be indicated. When the invoice declaration

relates, in whole or in part, to products originating in Ceuta and

Mellila, the exporter must clearly indicate them in the document on

which the declaration is made out by means of the symbol "CM".

(5) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(6) Origin of products to be indicated. When the invoice declaration

relates, in whole or in part, to products originating in Ceuta and

Mellila, the exporter must clearly indicate them in the document on

which the declaration is made out by means of the symbol "CM".

(7) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(8) Origin of products to be indicated. When the invoice declaration

relates, in whole or in part, to products originating in Ceuta and

Mellila, the exporter must clearly indicate them in the document on

which the declaration is made out by means of the symbol "CM".

(9) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(10) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(11) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(12) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(13) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(14) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(15) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(16) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(17) When the invoice declaration is made out by an approval

exporter, the authorization number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(18) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(19) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(20) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(21) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(22) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(23) When the invoice declaration is made out by an approval

exporter, the authorisation number of the approved exporter must be

entered in this space. When the invoice declaration is not made out

by an approval exporter, the words in brackets shall be omitted or

the space left blank.

(24) Origin of products to be indicated. When the invoice

declaration relates, in whole or in part, to products originating in

Ceuta and Mellila, the exporter must clearly indicate them in the

document on which the declaration is made out by means of the symbol

"CM".

(25) These indications may be omitted if the information is

contained on the document itself.

(26) In cases where the exporter is not required to sign, the

exemption of signature also implies the exemption of the name of the

signatory.

 

 

PROTOCOL 5

on mutual administrative assistance in customs matters

 

Article 1

Definitions

For the purposes of this Protocol:

(a) "customs legislation" shall mean any legal or regulatory

provisions applicable in the territories of the Contracting Parties,

governing the import, export and transit of goods and their placing

under any other customs regime or procedure, including measures of

prohibition, restriction and control;

(b) "applicant authority" shall mean a competent administrative

authority which has been designated by a Contracting Party for this

purpose and which makes a request for assistance on the basis of

this Protocol;

(c) "requested authority" shall mean a competent administrative

authority which has been designated by a Contracting Party for this

purpose and which receives a request for assistance on the basis of

this Protocol;

(d) "personal data" shall mean all information relating to an

identified or identifiable individual;

(e) "operation in breach of customs legislation" shall mean any

violation or attempted violation of customs legislation.

 

Article 2

Scope

1. The Contracting Parties shall assist each other, in the areas

within their competence, in the manner and under the conditions laid

down in this Protocol, to ensure the correct application of the

customs legislation, in particular by preventing, investigating and

combating operations in breach of that legislation.

2. Assistance in customs matters, as provided for in this Protocol,

shall apply to any administrative authority of the Contracting

Parties which is competent for the application of this Protocol. It

shall not prejudice the rules governing mutual assistance in

criminal matters. Nor shall it cover information obtained under

powers exercised at the request of a judicial authority, except

where communication of such information is authorised by that

authority.

3. Assistance to recover duties, taxes or fines is not covered by

this Protocol.

 

Article 3

Assistance on request

1. At the request of the applicant authority, the requested

authority shall provide it with all relevant information which may

enable it to ensure that customs legislation is correctly applied,

including information regarding activities noted or planned which

are or could be operations in breach of customs legislation.

2. At the request of the applicant authority, the requested

authority shall inform it:

(a) whether goods exported from the territory of one of the

Contracting Parties have been properly imported into the territory

of the other Contracting Party, specifying, where appropriate, the

customs procedure applied to the goods;

(b) whether goods imported into the territory of one of the

Contracting Parties have been properly exported from the territory

of the other Party, specifying, where appropriate, the customs

procedure applied to the goods.

3. At the request of the applicant authority, the requested

authority shall, within the framework of its legal or regulatory

provisions, take the necessary steps to ensure special surveillance

of:

(a) natural or legal persons in respect of whom there are reasonable

grounds for believing that they are or have been involved in

operations in breach of customs legislation;

(b) places where stocks of goods have been or may be assembled in

such a way that there are reasonable grounds for believing that

these goods are intended to be used in operations in breach of

customs legislation;

(c) goods that are or may be transported in such a way that there

are reasonable grounds for believing that they are intended to be

used in operations in breach of customs legislation;

(d) means of transport that are or may be used in such a way that

there are reasonable grounds for believing that they are intended to

be used in operations in breach of customs legislation.

 

Article 4

Spontaneous assistance

The Contracting Parties shall assist each other, at their own

initiative and in accordance with their legal or regulatory

provisions, if they consider that to be necessary for the correct

application of customs legislation, particularly by providing

information obtained pertaining to:

- activities which are or appear to be operations in breach of

customs legislation and which may be of interest to the other

Contracting Party,

- new means or methods employed in carrying out operations in breach

of customs legislation,

- goods known to be subject to operations in breach of customs

legislation,

- natural or legal persons in respect of whom there are reasonable

grounds for believing that they are or have been involved in

operations in breach of customs legislation,

- means of transport in respect of which there are reasonable

grounds for believing that they have been, are, or may be used in

operations in breach of customs legislation.

 

Article 5

Delivery, notification

At the request of the applicant authority, the requested authority

shall, in accordance with legal or regulatory provisions applicable

to the latter, take all necessary measures in order to:

- deliver any documents, or

- notify any decisions,

emanating from the applicant authority and falling within the scope

of this Protocol, to an addressee residing or established in the

territory of the requested authority.

Requests for delivery of documents or notification of decisions

shall be made in writing in an official language of the requested

authority or in a language acceptable to that authority.

 

Article 6

Form and substance of requests for assistance

1. Requests pursuant to this Protocol shall be made in writing. They

shall be accompanied by the documents necessary to enable compliance

with the request. When required because of the urgency of the

situation, oral requests may be accepted, but must be confirmed in

writing immediately.

2. Requests pursuant to paragraph 1 shall include the following

information:

(a) the applicant authority;

(b) the measure requested;

(c) the object of and the reason for the request;

(d) the legal or regulatory provisions and other legal elements

involved;

(e) indications as exact and comprehensive as possible on the

natural or legal persons who are the target of the investigations;

(f) a summary of the relevant facts and of the enquiries already

carried out.

3. Requests shall be submitted in an official language of the

requested authority or in a language acceptable to that authority.

This requirement shall not apply to any documents that accompany the

request under paragraph 1.

4. If a request does not meet the formal requirements set out above,

its correction or completion may be requested; in the meantime

precautionary measures may be ordered.

 

Article 7

Execution of requests

1. In order to comply with a request for assistance, the requested

authority shall proceed, within the limits of its competence and

available resources, as though it were acting on its own account or

at the request of other authorities of that same Contracting Party,

by supplying information already possessed, by carrying out

appropriate enquiries or by arranging for them to be carried out.

This provision shall also apply to any other authority to which the

request has been addressed by the requested authority when the

latter cannot act on its own.

2. Requests for assistance shall be executed in accordance with the

legal or regulatory provisions of the requested Contracting Party.

3. Duly authorised officials of a Contracting Party may, with the

agreement of the other Contracting Party involved and subject to the

conditions laid down by the latter, be present to obtain in the

offices of the requested authority or any other concerned authority

in accordance with paragraph 1 information relating to activities

that are or may be operations in breach of customs legislation which

the applicant authority needs for the purposes of this Protocol.

4. Duly authorised officials of a Contracting Party involved may,

with the agreement of the other Contracting Party involved and

subject to the conditions laid down by the latter, be present at

enquiries carried out in the latter's territory.

 

Article 8

Form in which information is to be communicated

1. The requested authority shall communicate results of enquiries to

the applicant authority in writing together with relevant documents,

certified copies or other items.

2. This information may be in computerised form.

3. Original documents shall be transmitted only upon request in

cases where certified copies would be insufficient. These originals

shall be returned at the earliest opportunity.

 

Article 9

Exceptions to the obligation to provide assistance

1. Assistance may be refused or may be subject to the satisfaction

of certain conditions or requirements in cases where a Party is of

the opinion that assistance under this Protocol would:

(a) be likely to prejudice the sovereignty of Croatia or that of a

Member State which has been requested to provide assistance under

this Protocol; or

(b) be likely to prejudice public policy, security or other

essential interests, in particular in the cases referred to under

Article 10(2); or

(c) violate an industrial, commercial or professional secret.

2. Assistance may be postponed by the requested authority on the

ground that it will interfere with an ongoing investigation,

prosecution or proceeding. In such a case, the requested authority

shall consult with the applicant authority to determine if

assistance can be given subject to such terms or conditions as the

requested authority may require.

3. Where the applicant authority seeks assistance which it would

itself be unable to provide if so requested, it shall draw attention

to that fact in its request. It shall then be for the requested

authority to decide how to respond to such a request.

4. For the cases referred to in paragraphs 1 and 2, the decision of

the requested authority and the reasons therefor must be

communicated to the applicant authority without delay.

 

Article 10

Information exchange and confidentiality

1. Any information communicated in whatsoever form pursuant to this

Protocol shall be of a confidential or restricted nature, depending

on the rules applicable in each of the Contracting Parties. It shall

be covered by the obligation of official secrecy and shall enjoy the

protection extended to similar information under the relevant laws

of the Contracting Party that received it and the corresponding

provisions applying to the Community authorities.

2. Personal data may be exchanged only where the Contracting Party

which may receive them undertakes to protect such data in at least

an equivalent way to the one applicable to that particular case in

the Contracting Party that may supply them. To that end, contracting

parties shall communicate to each other information on their

applicable rules, including, where appropriate, legal provisions in

force in the Member States of the Community.

3. The use, in judicial or administrative proceedings instituted in

respect of operations in breach of customs legislation, of

information obtained under this Protocol, is considered to be for

the purposes of this Protocol. Therefore, the Contracting Parties

may, in their records of evidence, reports and testimonies and in

proceedings and charges brought before the courts, use as evidence

information obtained and documents consulted in accordance with the

provisions of this Protocol. The competent authority which supplied

that information or gave access to those documents shall be notified

of such use.

4. Information obtained shall be used solely for the purposes of

this Protocol. Where one of the Contracting Parties wishes to use

such information for other purposes, it shall obtain the prior

written consent of the authority which provided the information.

Such use shall then be subject to any restrictions laid down by that

authority.

 

Article 11

Experts and witnesses

An official of a requested authority may be authorised to appear,

within the limitations of the authorisation granted, as an expert or

witness in judicial or administrative proceedings regarding the

matters covered by this Protocol, and produce such objects,

documents or certified copies thereof, as may be needed for the

proceedings. The request for appearance must indicate specifically

before which judicial or administrative authority the official will

have to appear, on what matters and by virtue of what title or

qualification the official will be questioned.

 

Article 12

Assistance expenses

The Contracting Parties shall waive all claims on each other for the

reimbursement of expenses incurred pursuant to this Protocol,

except, as appropriate, for expenses to experts and witnesses, and

those to interpreters and translators who are not public service

employees.

 

Article 13

Implementation

1. The implementation of this Protocol shall be entrusted, on the

one hand, to the customs authorities of Croatia and, on the other

hand, to the competent services of the Commission of the European

Communities and the customs authorities of the Member States of the

European Union as appropriate. They shall decide on all practical

measures and arrangements necessary for its application, taking into

consideration the rules in force in particular in the field of data

protection. They may recommend to the competent bodies amendments

which they consider should be made to this Protocol.

2. The Contracting Parties shall consult each other and subsequently

keep each other informed of the detailed rules of implementation

which are adopted in accordance with the provisions of this

Protocol.

 

Article 14

Other agreements

1. Taking into account the respective competencies of the European

Community and the Member States, the provisions of this Protocol

shall:

- not affect the obligations of the Contracting Parties under any

other international agreement or convention,

- be deemed complementary to agreements on mutual assistance which

have been or may be concluded between individual Member States and

Croatia, and shall

- not affect the Community provisions governing the communication

between the competent services of the Commission of the European

Communities and the customs authorities of the Member States of any

information obtained under this Protocol which could be of interest

to the Community.

2. Notwithstanding the provisions of paragraph 1, the provisions of

this Protocol shall take precedence over the provisions of any

bilateral agreement on mutual assistance which has been or may be

concluded between individual Member States and Croatia in so far as

the provisions of the latter are incompatible with those of this

Protocol.

3. In respect of questions relating to the applicability of this

Protocol, the Contracting Parties shall consult each other to

resolve the matter in the framework of the Interim Committee set up

under Article 38 of this Agreement.

 

 

 

 

PROTOCOL 6

on road transit traffic

 

Article 1 (SAA Protocol 6, Article 3(a) and (b))

Definitions

For the purpose of this Protocol, the following definitions shall

apply:

(a) Community transit traffic: the carriage, by a carrier

established in the Community, of goods in transit through Croatian

territory en route to or from a Member State of the Community;

(b) Croatian transit traffic: the carriage, by a carrier established

in Croatia, of goods in transit from Croatia through Community

territory and destined for a third country or of goods from a third

country destined for Croatia.

 

Article 2 (SAA Protocol 6, Article 11(2) (3) and (6))

General provisions

1. The Parties hereby agree to grant unrestricted access to

Community transit traffic through Croatia and to Croatian transit

traffic through the Community with effect from the date of entry

into force of this Agreement.

2. By way of derogation from paragraph 1 the following provisions

will apply to Croatian transit traffic through Austria:

(a) until 31 December 2002 a regime for Croatian transit identical

to that applied under the bilateral Agreement between Austria and

Croatia, signed on 6 June 1995, will be maintained. No later than 30

June 2002 the Parties will examine the functioning of the regime

applied between Austria and Croatia in the light of the principle of

non-discrimination which must apply to heavy goods vehicles from the

European Community and such vehicles from Croatia in transit through

Austria. Appropriate measures will be taken in order to ensure, if

necessary, effective non-discrimination;

(b) with effect from 1 January 2003 a system of ecopoints similar to

that laid down by Article 11 of Protocol 9 to the 1994 Act of

Accession of Austria to the European Union will apply until 31

December 2003. The method of calculation and the detailed rules and

procedures for the management and control of the ecopoints will be

agreed in good time by means of an exchange of letters between the

Contracting Parties and will be in line with the provisions of

Articles 11 and 14 of the abovementioned Protocol 9.

3. The Parties shall refrain from taking any unilateral action that

might lead to discrimination between Community and Croatian carriers

or vehicles. Each Contracting Party shall take all steps necessary

to facilitate road transport to or through the territory of the

other Contracting Party.

 

Article 3 (SAA Protocol 6, Article 18)

Simplification of formalities

1. The Parties agree to simplify the flow of goods by rail and road,

whether bilateral or in transit.

2. The Parties agree to begin negotiations with a view to concluding

an agreement on the facilitation of controls and formalities

relating to the carriage of goods.

3. The Parties agree, to the extent necessary, to take joint action

on, and to encourage, the adoption of further simplification

measures.

 

Article 4 (SAA Protocol 6, Article 20.1)

Implementation

Cooperation between the Parties in the implementation of this

Protocol shall be carried out within the framework of a special

subcommittee to be set up in accordance with Article 41 of this

Agreement.

 

 

 

 

Final Act

 

The plenipotentiaries of the EUROPEAN COMMUNITY,

hereinafter referred to as "the Community",

of the one part, and

the plenipotentiary of the REPUBLIC OF CROATIA,

hereinafter referred to as "Croatia",

of the other part,

meeting at Luxembourg on the twenty-ninth day of October in the year

two thousand and one for the signature of the Interim Agreement on

trade and trade-related matters between the European Community, of

the one part, and the Republic of Croatia, of the other part,

hereinafter referred to as "the Agreement";

have at the time of signature adopted the following texts:

the Agreement,

its Annexes I to VI, namely:

Annex I: Croatian tariff concession for Community industrial

products referred to in Article 5(2);

Annex II: Croatian tariff concession for Community industrial

products referred to in Article 5(3);

Annex III: definition of "baby beef" products referred to in Article

14(2);

Annex IV(a): Croatian tariff concession for agricultural products

(duty-free for unlimited quantities at the date of entering into

force of the Agreement) referred to in Article 14(3)(a)(i);

Annex IV(b): Croatian tariff concession for agricultural products

(duty-free within quota at the entering into force of the Agreement)

referred to in Article 14(3)(a)(ii);

Annex IV(c): Croatian tariff concession for agricultural products

(duty-free for unlimited quantities one year after entering into

force of the Agreement) referred to in Article 14(3)(b)(i);

Annex IV(d): Croatian tariff concession for agricultural products

(progressive elimination of most-favoured nation treatment (MFN)

duties within tariff quotas) referred to in Article 14(3)(c)(i);

Annex IV(e): Croatian tariff concession for agricultural products

(progressive reduction of most-favoured nation treatment (MFN)

duties for unlimited quantities) referred to in Article

14(3)(c)(ii);

Annex IV(f): Croatian tariff concession for agricultural products

(progressive reduction of MFN duties within quotas) referred to in

Article 14(3)(c)(iii);

Annex V(a): products referred to in Article 15(1);

Annex V(b): products referred to in Article 15(2);

Annex VI: intellectual, industrial and commercial property rights

referred to in Article 36,

and the following Protocols:

Protocol 1 on textile and clothing products;

Protocol 2 on steel products;

Protocol 3 on trade between the Community and Croatia in processed

agricultural products;

Protocol 4 concerning the definition of the concept of "originating

products" and methods of administrative cooperation;

Protocol 5 on mutual assistance between administrative authorities

in customs matters;

Protocol 6 on road transit traffic.

The plenipotentiaries of the Community and the plenipotentiaries of

Croatia have also adopted the following declarations attached to

this Final Act:

Joint Declaration concerning Articles 8 and 16 of the Agreement;

Joint Declaration concerning Article 28 of the Agreement;

Joint Declaration concerning the implementation of trade

concessions;

Joint Declaration concerning Article 36 of the Agreement;

Joint Declaration concerning Article 46 of the Agreement;

Joint Declaration concerning Protocol 4 with regard to the

Principality of Andorra;

Joint Declaration concerning Protocol 4 with regard to the Republic

of San Marino.

The plenipotentiaries of Croatia have taken note of the Unilateral

Declaration by the Community and its Member States concerning

Article 17 of the Agreement, annexed to this Final Act.

 

Hecho en Luxemburgo, el veintinueve de octubre del dos mil uno.

Udfördiget i Luxembourg den niogtyvende oktober to tusind og en.

Geschehen zu Luxemburg am neunundzwanzigsten Oktober

zweitausendundeins.

>ISO_7>øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ õčś˙ėł õżżąń ĻśĮųņęč˙į ōž˙

šłūłĄōõĖ ążń.

>ISO_1>Done at Luxembourg on the twenty-ninth day of October in the

year two thousand and one.

Fait š Luxembourg, le vingt-neuf octobre deux mille un.

Fatto a Lussemburgo, addü ventinove ottobre duemilauno.

Gedaan te Luxemburg, de negenentwintigste oktober tweeduizendeneen.

Feito em Luxemburgo, em vinte e nove de Outubro de dois mil e um.

Tehty Luxemburgissa kahdentenakymmenentenōyhdeksōntenō pōivōnō

lokakuuta vuonna kaksituhattayksi.

Som skedde i Luxemburg den tjugonionde oktober tjugohundraett.

Sastavljeno u Luksemburgu, dana dvadeset devetoga listopada godine

dvije tisuce prve.

 

Por la Comunidad Europea/For Det Europöiske Föllesskab/FŽr die

Europōische Gemeinschaft/>ISO_7>Ćłń Į÷ż ÅįęųĘńŪśČ

Ź˙łżŽĮ÷Įń/>ISO_1>For the European Community/Pour la Communautł

europłenne/Per la Comunitš europea/Voor de Europese Gemeenschap/Pela

Comunidade Europeia/Euroopan yhteisŠn puolesta/Põ Europeiska

gemenskapens vōgnar

>PIC FILE= "L_2001330EN.020601.TIF">

>PIC FILE= "L_2001330EN.020602.TIF">

Za Republiku Hrvatsku

>PIC FILE= "L_2001330EN.020603.TIF">

 

 

JOINT DECLARATION

concerning Articles 8 and 16

(SAA Articles 21 and 29)

 

The Parties declare that in the implementation of Articles 8 and 16

they will examine, in the Interim Committee, the impact of any

preferential agreements negotiated by Croatia with third countries

(excluding the countries covered by the European Union's

stabilisation and association process and other adjacent countries

which are not European Union's members).

This examination will allow for an adjustment of Croatian

concessions to the European Community if Croatia were to offer

significantly better concessions to these countries.

 

 

JOINT DECLARATION

Concerning Article 28

(SAA Article 41)

 

1. The Community declares its readiness to examine, within the

Interim Committee, the issue of Croatia's participation in diagonal

cumulation of rules of origin once economic and commercial as well

as other relevant conditions for granting diagonal cumulation have

been established.

2. With this in mind, Croatia declares its readiness to enter into

negotiations as soon as possible in order to start economic and

trade cooperation with a view to establishing free trade areas with,

in particular, the other countries covered by the European Union's

stabilisation and association process.

 

 

JOINT DECLARATION

concerning the implementation of trade concessions

 

1. For the purpose of the implementation of Annexes V(a) and (b) the

Parties agree that "Year 1" is intended to start from the date of

entry into force of the Agreement, "Year 2" is intended to start on

1 January 2003 and "Year 3" is intended to start on 1 January 2004

respectively.

2. For the purpose of the implementation of Protocol 3, Annex II,

the Parties agree that the concessions agreed for year 2002 will be

applied from the date of the entry into force of the Agreement. The

concessions agreed for the following years will apply from the 1

January of each respective year.

 

 

JOINT DECLARATION

concerning Article 36

(SAA Article 71)

 

The Parties agree that, for the purpose of the Agreement,

intellectual, industrial and commercial property includes in

particular copyright, including the copyright in computer programs,

and neighbouring rights, the rights relating to databases, patents,

industrial designs, trade marks and service marks, topographies of

integrated circuits, geographical indications, including appellation

of origins, as well as protection against unfair competition as

referred to in Article 10a of the Paris Convention for the

Protection of Industrial Property and Protection of Undisclosed

Information on Know-how.

 

 

JOINT DECLARATION

concerning Article 46

(SAA Article 120)

 

(a) For the purposes of the interpretation and practical application

of the Agreement, the Parties agree that the cases of special

urgency referred to in Article 46 of the Agreement mean cases of

material breach of the Agreement by one of the two Parties. A

material breach of the Agreement consists in:

- repudiation of the Agreement not sanctioned by the general rules

of international law,

- violation of the essential elements of the Agreement set out in

Article 1;

(b) The Parties agree that the "appropriate measures" referred to in

Article 46 are measures taken in accordance with international law.

If a Party takes a measure in a case of special urgency pursuant to

Article 46, the other Party may avail itself of the dispute

settlement procedure.

 

 

DECLARATIONS CONCERNING PROTOCOL 4

 

Joint declaration with regard to the Principality of Andorra

1. Products originating in the Principality of Andorra falling

within Chapters 25 to 97 of the Harmonised System shall be accepted

by Croatia as originating in the Community within the meaning of the

Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

Joint declaration with to the Republic of San Marino

1. Products originating in the Republic of San Marino shall be

accepted by Croatia as originating in the Community within the

meaning of the Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

 

 

UNILATERAL DECLARATION

Declaration by the Community and its Member States

 

Considering that exceptional trade measures are granted by the

European Community to countries participating or linked to the

European Union's stabilisation and association process including

Croatia on the basis of Council Regulation (EC) No 2007/2000, the

European Community and its Member States declare that:

- pursuant to Article 17 of this Agreement, those of the unilateral

autonomous trade measures which are more favourable shall apply in

addition to the contractual trade concessions offered by the

Community in the Agreement as long as Regulation (EC) No 2007/2000

applies,

- in particular, for the products covered by Chapters 7 and 8 of the

Combined Nomenclature, for which the Common Customs Tariff provides

for the application of ad valorem customs duties and a specific

customs duty, the reduction shall apply also to the specific customs

duty in derogation from the relevant provision of Article 14(1).