21997A1218(02)

 

Cooperation Agreement between the European Community and the former

Yugoslav Republic of Macedonia - Protocol 1 on additional trade

arrangements for certain iron and steel product - Protocol 2 on the

definition of the concept of 'originating products' and methods of

administrative cooperation - Protocol 3 on financial cooperation -

Joint Declarations - Declarations of Intent by the Contracting

Parties - Declarations by the Community

 

Official Journal L 348 , 18/12/1997 P. 0002 - 0167 

 

Dates:

of document:   29/04/1997

of effect:   01/01/1998; Entry into force See Art 49 ; See OJ

L 348/97 P. 168

end of validity:   99/99/9999

 

Authentic language: The official languages ; German ; Danish ;

French ; Italian ; Dutch ; Greek ; English ; Spanish ; Portuguese ;

Swedish ; Finnish ; Other than Community language ; Macedonian

Author:

Macedonia ; European Community ; Former Yugoslav Republic of

Macedonia

 

Subject matter: External relations ; Commercial policy ; Provisions

under Article 235 EEC

Directory code: 11401040

EUROVOC descriptor: customs regulations ; economic cooperation ;

import policy ; industrial cooperation ; EC cooperation agreement ;

Former Yugoslav Republic of Macedonia

 

Legal basis:

192E113................... Adoption

192E228-P2F2.............. Adoption

192E228-P3L2.............. Adoption

192E235................... Adoption

Instruments cited:

389R3906..................

294A1223(01)..............

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

394R0517..................

Amended by:

Adopted by.... 397D0831..........

Suspended by.. 200A1209(01)...... Suspension ANN A. from 01/12/2000

Suspended by.. 200A1209(01)...... Suspension ANN B. from 01/12/2000

Suspended by.. 200A1209(01)...... Suspension TIT II. from 01/12/2000

Suspended by.. 200D1209(01)...... Suspension ANN A. from 01/12/2000

Suspended by.. 200D1209(01)...... Suspension ANN B. from 01/12/2000

Suspended by.. 200D1209(01)...... Suspension TIT II. from 01/12/2000

Amended by.... 201A0504(01)...... Suspension ART30 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART29 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART28 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART27 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART26 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART25 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART24 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART23 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART32 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART31 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART22 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART18 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART14 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART15 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART17 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART16 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART13 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART19 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART21 from DATEFF

Amended by.... 201A0504(01)...... Suspension ART20 from DATEFF

Replaced by... 204A0320(03)...... from 01/04/2004

 

 

 

COOPERATION AGREEMENT between the European Community and the former

Yugoslav Republic of Macedonia

THE EUROPEAN COMMUNITY,

hereinafter referred as 'the Community`,

of the one part, and

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA,

of the other part,

RESOLVED to strengthen economic cooperation between the Community

and the former Yugoslav Republic of Macedonia;

RESOLVED to promote the development and diversification of economic,

financial and trade cooperation in order to foster a better balance

and an improvement in the structure of their trade and expand its

volume and to improve the welfare of their populations;

RESOLVED to provide a sounder basis for cooperation in conformity

with their international obligations;

RESOLVED to contribute to regional stability and to open and

cooperative relations among countries of South-Eastern Europe,

taking into consideration the specific situation of the former

Yugoslav Republic of Macedonia;

CONSCIOUS that the Interim Accord of 13 September 1995 contributes

to regional stability and favours cooperative relations between

Greece and the former Yugoslav Republic of Macedonia;

AWARE that the former Yugoslav Republic of Macedonia has taken the

initiative leading to UN General Assembly Resolution No 48/84B of 16

December 1993 on the development of good neighbourly relations among

Balkan States;

CONSCIOUS of the need to bring about harmonious economic and trade

relations between the Community and the former Yugoslav Republic of

Macedonia;

AWARE of the importance of giving full effect to all the provisions

and principles of the Organization on Security and Cooperation in

Europe (OSCE) process, and in particular those set out in the

Helsinki Final Act, the concluding documents of the Madrid, Vienna

and Copenhagen meetings and the Charter of Paris for a New Europe,

particularly with regard to the rule of law, democracy and human

rights, as well as those of the Bonn Conference on Economic

Cooperation;

CONSCIOUS that the respect for democratic principles and basic human

rights, as proclaimed in the Universal Declaration of Human Rights,

underpins the internal and international policies of the Community

and of the former Yugoslav Republic of Macedonia and constitutes an

essential element of this Agreement;

CONSCIOUS that the same applies to the principles of a market

economy as reflected in the document of the Bonn Conference on

Economic Cooperation;

RECOGNIZING the importance of social development which should go

hand in hand with any economic development;

RECOGNIZING the importance of guaranteeing the rights of ethnic and

national groups and minorities, in accordance with the undertakings

made within the Organization on Security and Cooperation in Europe

(OSCE);

AWARE of the importance of strengthening the democratic institutions

and of supporting the process of economic reform in the former

Yugoslav Republic of Macedonia, bearing in mind the overall

situation in the region and the particular economic difficulties of

the former Yugoslav Republic of Macedonia;

DESIROUS of establishing regular political dialogue on bilateral and

international issues of mutual interest with particular emphasis on

the creation of conditions facilitating the progressive

rapprochement of the former Yugoslav Republic of Macedonia with the

Community and favourable to cooperation and good-neighbourly

relations in the region;

CONSCIOUS that the readiness of the former Yugoslav Republic of

Macedonia to enter into such cooperation and relations with the

other countries in the region constitutes an important factor in the

development of the relations and cooperation between the Community

and the former Yugoslav Republic of Macedonia;

CONSCIOUS that this Agreement constitutes a first step of

contractual relations between the Community and the former Yugoslav

Republic of Macedonia and that the Contracting Parties desire to

strengthen their contractual relations as soon as possible, taking

full account of the aspirations of the former Yugoslav Republic of

Macedonia for an advanced relationship with the European Union,

HAVE DECIDED to conclude this Agreement and to this end have

designated as their Plenipotentiaries:

THE EUROPEAN COMMUNITY:

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA:

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

HAVE AGREED AS FOLLOWS:

 

 

Article 1

The objective of this Agreement between the Community and the former

Yugoslav Republic of Macedonia is to promote comprehensive

cooperation between the Contracting Parties with a view to

contributing to the economic development of the former Yugoslav

Republic of Macedonia, in particular to the development of a market

economy, and to deepening relations between the Contracting Parties.

The Community's cooperation with and assistance to the former

Yugoslav Republic of Macedonia shall also contribute to good

neighbourly relations and the development of regional cooperation

and trade. To these ends, provisions and measures will be adopted

and implemented in the fields of economic, technical and financial

cooperation and trade.

The readiness of the former Yugoslav Republic of Macedonia to enter

into cooperative and good neighbourly relations with the other

countries of the region including the promotion of economic

cooperation and trade constitutes an important factor in the

development of the relations and cooperation between the Community

and the former Yugoslav Republic of Macedonia as foreseen in this

Agreement.

Respect for the democratic principles and human Rights established

by the Universal Declaration of Human rights, the Helsinki Final Act

and the Charter of Paris for a New Europe underpins the internal and

international policies of the Community and of the former Yugoslav

Republic of Macedonia, and constitutes an essential element of this

Agreement.

The same applies to the principles of a market economy as reflected

in the document of the Bonn Conference on Economic Cooperation.

The Contracting Parties acknowledge the importance of social

development which should go hand in hand with any economic

development. In this context the Contracting Parties give particular

priority to the respect for basic social rights.

 

TITLE I ECONOMIC, TECHNICAL AND FINANCIAL COOPERATION

 

Article 2

The Community and the former Yugoslav Republic of Macedonia shall

cooperate with the aim of contributing to the development of the

former Yugoslav Republic of Macedonia by efforts complementary to

those made by the former Yugoslav Republic of Macedonia itself and

of strengthening existing economic links between the former Yugoslav

Republic of Macedonia and the Community on as broad a basis as

possible, for the mutual benefit of the Contracting Parties.

Particular weight shall be attached to activities and cooperation of

interregional or trans-European interest.

 

Article 3

In order to achieve the cooperation referred to in Article 2,

account shall be taken, in particular, of the development objectives

and priorities of the former Yugoslav Republic of Macedonia.

 

Article 4

1. The purpose of cooperation between the Community and the former

Yugoslav Republic of Macedonia in the field of industry shall be to

promote in particular:

- Community involvement in the efforts made by the former Yugoslav

Republic of Macedonia to modernize and restructure its industry with

a view to facilitating the transition to a market economy and to

foster economic cooperation with the other countries in the region,

- market surveys and trade promotion by both Contracting Parties on

their respective markets and on the markets of third countries,

- the transfer and development of technology and know-how in the

former Yugoslav Republic of Macedonia,

- fostering of cooperation in long-term production between economic

operators of the Contracting Parties in order to establish more

stable and balanced links between their respective economies,

- efforts to find appropriate ways and means of removing any

barriers to trade on both sides which are likely to impede access to

either market,

- the putting up for tender of goods and services contracts,

- the organization of contacts and meetings between industrial

policy-makers, promoters and economic operators in order to

encourage the establishment of new relations in the field of

industry, in accordance with the objectives of this Agreement,

- the exchange of available information on short- and medium-term

prospects and forecasts for production, consumption and trade.

2. The Contracting Parties shall encourage the development and

strengthening of craft industries and small and medium-sized

enterprises (SMEs) and their organizations in the former Yugoslav

Republic of Macedonia, as well as cooperation between craft

industries and SMEs in the Community and the former Yugoslav

Republic of Macedonia.

To this end they shall encourage the exchange of information and the

transfer of technology, as well as cooperation between enterprises,

in particular by establishing appropriate links with Community

operators (such as BRE, BC-Net, Euro Info Centre network, etc.) and

by organizing direct business contacts between enterprises (such as

Interprise events and/or participation at Europartenariats).

3. In line with the principles of a market economy and of the Energy

Charter Treaty, the aim of cooperation in the field of energy

between the Community and the former Yugoslav Republic of Macedonia

shall be to encourage in particular the facilitation of energy

transit, the consideration of the possibility of the interconnection

of energy networks and the participation of the Contracting Parties'

economic operators in research, production and processing programmes

in connection with the energy resources of the former Yugoslav

Republic of Macedonia and any other projects of mutual interest.

4. The Contracting Parties shall cooperate with a view to promoting

the development of standards in mining and modernizing existing

facilities.

 

Article 5

The Contracting Parties shall cooperate in the field of research and

technological development in accordance with the existing

instruments.

 

Article 6

1. The main aims of cooperation in agriculture between the Community

and the former Yugoslav Republic of Macedonia shall be:

- to encourage scientific and technical cooperation on projects of

mutual interest, including projects in third countries,

- in particular, to promote mutually advantageous investment

projects and in that connection encourage efforts to achieve

complementarity.

2. To this end the Community and the former Yugoslav Republic of

Macedonia shall:

- step up the exchange of information on their agricultural policy

guidelines, including short- and medium-term production, consumption

and trade forecasts,

- facilitate and encourage the study of practical schemes for

cooperation in the mutual interest of both Contracting Parties,

- encourage the improvement and broadening of contacts between

economic operators.

 

Article 7

1. In the field of transport, the Community and the former Yugoslav

Republic of Macedonia shall examine the scope:

- for improving and developing international transport services

including combined transport, notably in order to achieve

complementarity taking into account the regional context, and

- for implementing specific schemes of mutual interest in this

field.

2. Cooperation shall also aim to encourage the improvement and

development of infrastructure, to the mutual benefit of the

Contracting Parties.

To this end the Community and the former Yugoslav Republic of

Macedonia shall exchange information on projects of mutual interest

to build trunk roads, and encourage cooperation in their execution.

3. In addition, the Community and the former Yugoslav Republic of

Macedonia shall hold exchanges of views and information on the

development of their respective transport policies.

 

Article 8

The Community and the former Yugoslav Republic of Macedonia shall

encourage exchanges of information on tourism and participation in

joint studies on possible ways of developing this sector in a

balanced and sustainable manner, and shall promote contacts between

their competent bodies and tourist trade associations, with a view

to increasing tourist flows.

 

Article 9

With the aim of improving health, the quality and circumstances of

life, the environment and living conditions of both Contracting

Parties, pooling technical know-how on environmental matters and

encouraging cooperation on environmental problems, the Community and

the former Yugoslav Republic of Macedonia shall exchange information

on developments in their respective policies with particular

emphasis on sustainable development and shall encourage the joint

implementation of specific schemes.

 

Article 10

1. In the context of financial cooperation, the Community and the

former Yugoslav Republic of Macedonia shall exchange information on

and undertake joint analyses of their medium-term economic policies,

balance-of-payments trends and the policies which determine them,

and capital market trends in European centres, with the aim of

promoting the activities of economic operators.

They shall exchange information in the Cooperation Council set up in

Article 33 on general conditions which may influence capital flows

earmarked for financing investment projects in various sectors of

mutual interest.

2. The Contracting Parties agree on the necessity of making every

effort and cooperating in order to prevent the use of their

financial systems for laundering of proceeds from criminal

activities in general and drug offences in particular.

3. The Community shall participate in the financing of capital

projects of mutual interest which take account of the objectives of

this Agreement, under the conditions laid down in Protocol 3.

4. Financial assistance will be made available under the PHARE

programme in accordance with Council Regulation (EEC) No 3906/89, as

amended, on a multiannual indicative basis including projects

promoting regional and other forms of cooperation.

 

Article 11

1. Within the limits of their powers, the Contracting Parties shall

make efforts to encourage and promote cooperation in the following

fields:

- establishment and supply of services, including financial

services,

- payment and movement of capital,

- information,

- development of human resources, education and training, social

affairs and public health,

- statistics and customs,

- telecommunications,

- standardization and certification,

- investment promotion and protection,

- public procurement.

2. The former Yugoslav Republic of Macedonia shall endeavour to

ensure that its legislation would be gradually made compatible with

that of the Community. The Community shall provide appropriate

technical assistance for this purpose.

3. The administrative authorities of the Contracting Parties shall

assist each other in the customs field, in accordance with the

provisions of Protocol 2.

 

Article 12

1. The Cooperation Council shall periodically define the general

guidelines of cooperation for the purpose of attaining the aims set

out in this Agreement.

2. The Cooperation Council shall be responsible for seeking ways and

means of establishing cooperation in the areas defined by this

Agreement.

 

TITLE II TRADE

 

Article 13

1. In the field of trade, the object of this Agreement is to promote

trade between the Contracting Parties, taking account of their

respective levels of development and of the need to ensure a better

balance in their trade, with a view to improving the conditions for

access for products of the former Yugoslav Republic of Macedonia to

the Community market.

2. The Community shall provide technical assistance for the

envisaged accession of the former Yugoslav Republic of Macedonia to

the World Trade Organization (WTO).

 

Article 14

Subject to the special provisions laid down or envisaged in respect

of certain products in this Title and in Protocol 2, products

originating in the former Yugoslav Republic of Macedonia other than

those listed in Annex II to the Treaty establishing the European

Community and in Annex A to this Agreement shall be imported into

the Community free of quantitative restrictions and measures having

equivalent effect, and of customs duties and charges having

equivalent effect.

 

Article 15

1. Imports into the Community of the products originating in the

former Yugoslav Republic of Macedonia listed in Annex C shall be

subject to annual ceilings, the ceilings fixed for the year of entry

into force of this Agreement being indicated against each product.

2. Imports into the Community of the products listed in Annexes D

and E shall be subject to annual tariff quotas, ceilings or

reference quantities, the quotas, ceilings and reference quantities

fixed for the year of entry into force of this Agreement being

indicated against each product.

3. Once a ceiling set for imports of a product is reached, the

customs duties generally applied in respect of third countries may

be reintroduced in respect of imports of the product in question

until the end of the calendar year.

4. Once a tariff quota set for imports of a product is reached, the

customs duties generally applied in respect of third countries will

be reintroduced in respect of imports of the product in question

until the end of the calendar year.

5. Once imports of a product subject to reference quantity exceeded

that reference quantity, a decision may be taken by the Community in

accordance with the appropriate Community procedure to make it

subject to a ceiling equal to the reference quantity, having regard

to the Community annual balance of trade in the product.

6. If, during two consecutive years, imports of a product listed in

Annex C have been less than 80 % of the amount laid down, the

Community may suspend the ceiling in question.

7. As from the second year following the entry into force of the

Agreement, the amounts of the ceilings given in Annex C shall be

increased annually by 5 % except that the Community may extend for a

period of one year the ceiling or ceilings set for the preceding

year.

8. Additional trade arrangements for certain iron and steel products

are laid down in Protocol 1.

9. Pending the conclusion of a separate agreement setting out

specific trade arrangements, the regime applicable to trade in

textile products (Chapters 50 to 63 of the combined nomenclature)

shall be the one defined by Council Regulation (EC) No 517/94.

10. The trade arrangements to apply to wine products will be defined

in a separate wine and spirit agreement.

 

Article 16

Imports into the Community of the products listed in Annex B shall

be subject to the tariff arrangements and rules indicated for each

of them in that Annex.

 

Article 17

1. For certain products which it considers to be sensitive, the

Community reserves the right to call upon the Cooperation Council to

determine such special conditions for access to its market as may

prove necessary.

The Cooperation Council shall determine the conditions in question

within a period not exceeding three months from the date of

notification. Failing a decision by the Cooperation Council within

that period, the Community may take the necessary measures. However,

such measures shall be of the same kind as those provided for in

Article 15.

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

Parties shall hold periodic exchanges of information in the

Cooperation Council before determining, if appropriate, special

conditions for access by the products concerned to the markets of

each of the Contracting Parties. The Contracting Parties shall

notably exchange information on trade flows and medium- and

long-term production and export forecasts.

3. The Cooperation Council shall examine periodically the measures

taken under paragraph 1 to ascertain whether they are compatible

with the objectives of this Agreement.

 

Article 18

The products referred to in this Agreement originating in the former

Yugoslav Republic of Macedonia may not be given more favourable

treatment when imported into the Community than that given by the

Member States among themselves.

 

Article 19

1. In the field of trade, the former Yugoslav Republic of Macedonia

shall grant the Community treatment no less favourable than

most-favoured-nation treatment. However, in order to promote

regional exchanges the former Yugoslav Republic of Macedonia will be

entitled during a transitional period expiring five years after the

entry into force of this Agreement to grant preferential treatment

to imports originating in other States which emerged from former

Yugoslavia or in other adjacent countries. The Cooperation Council

may decide a prolongation of this period.

2. Without prejudice to Article 20 (2), the former Yugoslav Republic

of Macedonia will refrain, as from this Agreement's entry into

force, from imposing on exports to the Community new customs duties

and charges having equivalent effect or new quantitative

restrictions and measures having equivalent effect.

 

Article 20

1. The Contracting Parties shall inform each other when this

Agreement is signed of the provisions relating to the trade

arrangements they apply.

2. Subject to Article 19 (1), the former Yugoslav Republic of

Macedonia shall be entitled to introduce into its trade arrangements

with the Community new customs duties and charges having equivalent

effect or new quantitative restrictions and measures having

equivalent effect, and to increase the duties and charges or the

quantitative restrictions and measures having equivalent effect

applied to products originating in or intended for the Community,

insofar as such measures are necessitated by the needs of the former

Yugoslav Republic of Macedonia for infant industries and

restructuring. In accordance with the objectives of this Agreement,

the measures selected by the former Yugoslav Republic of Macedonia

shall be those which least harm the trade and economic interests of

the Community.

3. The former Yugoslav Republic of Macedonia shall inform the

Community of the envisaged measures so that appropriate discussions

may be held on them prior to their introduction.

4. The Cooperation Council shall examine periodically the measures

taken by the former Yugoslav Republic of Macedonia under paragraph

2.

 

Article 21

The concept of originating products for the purposes of implementing

Title II and the methods of administrative cooperation relating

thereto are laid down in Protocol 2.

 

Article 22

In the event of modifications to the nomenclature of the customs

tariffs of the Contracting Parties affecting products referred to in

this Agreement, the Cooperation Council may adapt the tariff

nomenclature of these products to conform with such modifications,

provided the real advantages resulting from this Agreement are

maintained.

 

Article 23

The Contracting Parties shall refrain from any internal tax

establishing, whether directly or indirectly, discrimination between

the products of one Contracting Party and like products originating

in the territory of the other Contracting Party.

Products exported to the territory of one of the Contracting Parties

may not benefit from repayment of internal indirect taxation in

excess of the amount of indirect taxation imposed upon them.

 

Article 24

The Contracting Parties undertake to authorize in freely convertible

currency, any payments on the current account balance of payments

between residents of the Community and of the former Yugoslav

Republic of Macedonia connected with the movements of goods made in

accordance with the provisions of this Agreement.

 

Article 25

The former Yugoslav Republic of Macedonia shall take measures

guaranteeing effective and appropriate protection of intellectual,

industrial and commercial property, including effective means for

enforcing such rights, at a level similar to that which exists in

the Community, and shall accede to international conventions on

intellectual, industrial and commercial property.

 

Article 26

The 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 possessing artistic, historic or archaeological value; the

protection of intellectual, industrial and commercial property. Such

prohibitions or restrictions must not, however, constitute a means

of arbitrary discrimination or a disguised restriction on trade

between the Contracting Parties.

 

Article 27

1. If one of the Contracting Parties finds that dumping is taking

place in trade with the other Contracting Party, it may, pursuant to

Article VI of the General Agreement on Tariffs and Trade (GATT 1994)

and the Agreement on implementation of Article VI of GATT 1994, take

appropriate measures against this practice in accordance with the

procedures laid down in Article 30.

2. In the event of measures being taken against subsidies, the

Contracting Parties undertake to observe the provisions of the

Agreement on subsidies and countervailing duties annexed to the WTO

Agreement.

 

Article 28

Where any product is being imported into the territory of one of the

Contracting Parties in such increased quantities or under such

conditions as to cause or threaten to cause injury to domestic

producers of like or directly competitive products, the Contracting

Party concerned may take the necessary safeguard measures under the

conditions and in accordance with the procedures laid down in

Article 30.

 

Article 29

In the event of a Contracting Party subjecting imports of products

liable to give rise to the difficulties referred to in Article 28 to

an administrative procedure aimed at providing rapid information on

the trend of trade flows, it shall inform the other Contracting

Party.

 

Article 30

1. With regard to Article 27 (1), the Cooperation Council must be

informed of a case of dumping as soon as the authorities of the

importing Contracting Party have started the investigation. If the

dumping has not ceased or if no other satisfactory solution has been

found within 30 days following notification of the matter to the

Cooperation Council, the importing Contracting Party may adopt

appropriate measures.

2. In the cases specified in Article 28, before taking the measures

provided for therein or, in cases to which paragraph 3 applies, as

soon as possible, the Contracting Party in question shall supply the

Cooperation Council with all relevant information required for a

thorough examination of the situation, with a view to seeking a

solution acceptable to the Contracting Parties. Consultations shall

take place in the Cooperation Council before the Contracting Party

concerned takes the appropriate measures, should the other

Contracting Party so request.

3. Where exceptional circumstances require immediate action making

prior examination impossible, the Contracting Party concerned may,

in the situations specified in Articles 27 and 28, apply forthwith

such precautionary measures as are strictly necessary to remedy the

situation.

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

which least disturb the functioning of the Agreement. Such measures

must not exceed the limits of what is strictly necessary to

counteract the difficulties which have arisen.

The safeguard measures shall be notified immediately to the

Cooperation Council, which shall hold periodic consultations on

them, particularly with a view to their abolition as soon as

circumstances permit.

 

Article 31

In the event of a sudden and very substantial worsening of a trade

imbalance which is liable to jeopardize the smooth functioning of

this Agreement, the Contracting Parties shall hold special

consultations within the Cooperation Council to examine the

difficulties that have arisen with a view to keeping this Agreement

functioning as normally as possible.

 

Article 32

Where one or more Member States of the Community or the former

Yugoslav Republic of Macedonia is in serious difficulties or is

seriously threatened with difficulties as regards its balance of

payments, the Contracting Party concerned may take the necessary

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

given to those which least disturb the functioning of this

Agreement. They shall be notified immediately to the other

Contracting Party and shall be the subject of periodic consultations

within the Cooperation Council, particularly with a view to their

abolition as soon as circumstances permit.

 

TITLE III GENERAL AND FINAL PROVISIONS

 

Article 33

1. A Cooperation Council is hereby established. It shall have the

power, for the purpose of attaining the objectives set out in this

Agreement, to take decisions in the cases provided for in this

Agreement.

The decisions taken shall be binding on the Contracting Parties,

which shall take such measures as are required to implement them.

2. The Cooperation Council may also formulate any resolutions,

recommendations or opinions which it considers desirable for the

attainment of the common objectives and the smooth functioning of

this Agreement.

3. The Cooperation Council shall adopt its own rules of procedure.

 

Article 34

1. The Cooperation Council shall be composed of representatives of

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

Yugoslav Republic of Macedonia, on the other.

The European Investment Bank shall participate in the work of the

Cooperation Council where matters falling within its competence

arise.

2. Members of the Cooperation Council may be represented as laid

down in its rules of procedure.

3. The Cooperation Council shall act by mutual agreement between the

Community, on the one hand, and the former Yugoslav Republic of

Macedonia, on the other.

 

Article 35

1. The office of Chairman of the Cooperation Council shall be held

alternately by each of the Contracting Parties in accordance with

the conditions to be laid down in the rules of procedure.

2. Meetings of the Cooperation Council shall be called once a year

by its Chairman.

The Cooperation Council shall hold whatever additional meetings may

be necessary, at the request of either Contracting Party, as laid

down in its rules of procedure.

 

Article 36

1. The Cooperation Council may decide to set up working parties that

can assist in carrying out its duties.

2. In its rules of procedure, the Cooperation Council shall

determine the composition and duties of such working parties and how

they shall function.

 

Article 37

Where, in the course of the exchanges of information provided for in

this Agreement, problems arise or seem likely to arise in the

general functioning of this Agreement, particularly in the field of

trade, consultations shall take place between the Contracting

Parties in the Cooperation Council with a view to avoiding market

disturbances as far as possible.

 

Article 38

Either Contracting Party shall provide, if so requested by the other

Contracting Party, all relevant information on any agreements it

concludes containing tariff or trade provisions, and on any

amendments to its customs tariff or external trade arrangements.

Where such amendments or agreements have a direct and specific

impact on the functioning of this Agreement, appropriate

consultations shall be held within the Cooperation Council at the

request of the other Contracting Party so that the interests of the

Contracting Parties may be taken into consideration.

 

Article 39

When the Community concludes an association or cooperation agreement

having a direct and specific impact on the functioning of this

Agreement, appropriate consultations shall be held within the

Cooperation Council so that the Community may take into

consideration the interests of the Contracting Parties as defined by

this Agreement.

In the event of a third country acceding to the Community,

appropriate consultations shall be held within the Cooperation

Council so that the interests of the Contracting Parties as defined

by this Agreement may be taken into consideration.

 

Article 40

1. The Contracting Parties shall take any general or specific

measures required to fulfil their obligations under this Agreement.

They shall see to it that the objectives of this Agreement are

attained.

2. If either Contracting Party considers that the other Contracting

Party has failed to fulfil any of its obligations under this

Agreement, it may take appropriate measures. Before so doing, except

in cases of special urgency, it shall supply the Cooperation Council

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 shall be given to those

which least disturb the functioning of this Agreement. These

measures shall be notified immediately to the Cooperation Council,

and consultations shall be held on them within it, if the other

Contracting Party so requests.

 

Article 41

1. Any dispute which arises between the Contracting Parties

concerning the interpretation of this Agreement may be placed before

the Cooperation Council.

2. If the Cooperation Council fails to settle the dispute at its

next meeting, either Contracting Party may notify the other of the

appointment of an arbitrator; the other Party must then appoint a

second arbitrator within two months.

The Cooperation Council shall appoint a third arbitrator.

The decisions of the arbitrators shall be taken by majority vote.

Each Party to the dispute must take the measures required for the

implementation of the arbitrators' decision.

 

Article 42

In the fields covered by this Agreement:

- the arrangements applied by the former Yugoslav Republic of

Macedonia in respect of the Community shall not give rise to any

discrimination between the Member States and their nationals,

whether natural or legal persons,

- the arrangements applied by the Community in respect of the former

Yugoslav Republic of Macedonia shall not give rise to any

discrimination between its nationals, whether natural or legal

persons.

 

Article 43

Annexes A, B, C, D, and E and Protocols 1, 2 and 3 shall form an

integral part of this Agreement.

 

Article 44

This Agreement is concluded for an unlimited period.

Either Contracting Party may denounce this Agreement by notifying

the other Contracting Party.

This Agreement shall cease to apply six months after the date of

such notification.

 

Article 45

The Contracting Parties shall examine, in due course, when

conditions are met, the possibility of strengthening their

contractual relations, bearing in mind the aspiration of the former

Yugoslav Republic of Macedonia for an advanced relationship towards

an association with the European Community.

 

Article 46

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, on the other

hand, to the territory of the former Yugoslav Republic of Macedonia.

 

Article 47

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

languages of the Contracting Parties, each of these texts being

equally authentic.

 

Article 48

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

the depository of this Agreement.

 

Article 49

This Agreement shall be approved by the Contracting Parties in

accordance with their own procedures.

This Agreement shall enter into force on the first day of the second

month following notification that the procedures referred to in the

first paragraph have been completed.

 

 

 

ANNEX A concerning the products referred to in Article 14

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.

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ANNEX B concerning the tariff arrangements and rules applicable to

certain goods resulting from the processing of agricultural products

referred to in Article 16

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.

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ANNEX C concerning the annual ceilings referred to in Article 15 (1)

 

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 codes are

indicated, the preferential scheme is to be determined by

application of the CN code and corresponding description taken

together.

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ANNEX D Products referred to in Article 15 (2)

 

IMPORTS INTO THE COMMUNITY OF THE FOLLOWING PRODUCTS SHALL BENEFIT

FROM AN EXEMPTION FROM CUSTOMS DUTY

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.

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Appendix 1 to Annex D

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DEFINITION

Plum spirit with an alcoholic strength of 40 % vol or more, marketed

under the name OSLJIVOVICA, corresponding to the specifications laid

down in the Regulation relating to the quality of spirituous

beverages, being in force in the Republics and territory referred to

in this Regulation.

DÉFINITION

Eau-de-vie de prunes ayant un titre alcoomłtrique łgal ou supłrieur

š 40 % vol, commercialisłe sous la dłnomination SLJIVOVICA

correspondant š la spłcification reprise dans la rłglementation

relative š la qualitł des boissons alcooliques en vigueur dans les

rłpubliques et territoires visłs par le prłsent rųglement.

 

 

 

Appendix 2 to Annex D

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ANNEX E Products referred to in Article 15 (2)

 

IMPORTS INTO THE COMMUNITY OF THE FOLLOWING PRODUCTS SHALL BE

SUBJECT TO AN 80 % REDUCTION OF CUSTOMS DUTY

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.

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PROTOCOL 1 on additional trade arrangements for certain iron and

steel products

 

Article 1

This Protocol shall apply to the products listed in Chapters 72 and

73 of the Common Customs Tariff (1) under the following headings:

7204, 7208 to 7212, 7303 to 7306. It shall also apply to other

finished steel products which may originate in future in the former

Yugoslav Republic of Macedonia.

 

Article 2

1. Imports into the Community of the products originating in the

former Yugoslav Republic of Macedonia listed in Annex I to this

Protocol shall be subject to annual tariff ceilings, the ceilings

fixed for the year of entry into force of the Agreement being

indicated against each product.

2. As from the second year following the entry into force of the

Agreement, the amounts of the tariff ceilings given in Annex I shall

be increased annually by 5 % except that the Community may extend

for a period of one year the ceiling or ceilings set for the

preceding year.

 

Article 3

1. Quantitative restrictions, customs duties or charges on exports

to the Community and any measures having equivalent effect shall be

abolished by the former Yugoslav Republic of Macedonia upon entry

into force of the Agreement, with the exception of those applying to

ferrous waste and scrap under the complete CN heading 7204, which

shall be progressively reduced and shall be eliminated at the latest

by the end of the second year after the entry into force of the

Agreement.

2. The former Yugoslav Republic of Macedonia will liberalize

progressively the export restrictions relating to wastes and scrap

of ferrous metals. It will therefore permit the export of these

products to the Community within the following quantitative limits:

20 000 tonnes in the first year after the entry into force of the

Agreement and 35 000 tonnes in the second year after the entry into

force of the Agreement.

3. The authorities of the former Yugoslav Republic of Macedonia will

notify the Community, within three months of the entry into force of

the Agreement, of the internal measures taken to implement fully

this progressive liberalization and will send the Community details

of the export licences issued and of exports realized at six-monthly

intervals. The Contact Group will periodically review the

progressive liberalization of the export restrictions and, where

appropriate, make recommendations to the Cooperation Council.

 

Article 4

Where any product is being imported into the territory of one of the

Contracting Parties in such increased quantities or under such

conditions as to cause or threaten to cause injury to domestic

producers of like or directly competitive products or serious

disturbances to the steel markets of the other Contracting Party,

the Contracting Parties shall enter into consultations immediately

to find an appropriate solution before the Contracting Party

concerned takes the appropriate measures. In the selection of

measures, priority must be given to those which least disturb the

functioning of the Agreement.

 

Article 5

1. The Contracting Parties recognize the need for an administrative

procedure having as its purpose the rapid provision of information

on the trend in trade flows in respect of the trade in steel

products originating in the former Yugoslav Republic of Macedonia in

order to increase transparency and to avoid possible diversions of

trade.

2. The Contracting Parties therefore agree to establish a

double-checking system, without quantitative limits, for the import

into the Community of steel products originating in the former

Yugoslav Republic of Macedonia; to exchange statistical information

on export and surveillance documents and to hold consultations

promptly on any problems arising from the operation of such a

system.

3. The details of the double-checking system are contained in Annex

II to this Protocol. The continuing need for this system shall be

regularly reviewed. The Annex may subsequently be amended or the

double-checking system abolished by means of a Decision of the

Cooperation Council.

 

Article 6

The Contracting Parties commit themselves to close cooperation in

matters relating to the iron and steel industry, particularly in the

areas listed in Article 4 of the Agreement. In this context, they

agree to ensure transparency through regular exchanges of

information on policy in areas such as competition, public aid and

restructuring.

 

Article 7

The Parties agree that one of the special bodies established by the

Cooperation Council shall be a Contact Group responsible for

discussing the implementation of this Protocol.

 

(1) Commission Regulation (EC) No 1734/96 of 9 September 1996

amending Annex I to Council Regulation (EEC) No 2658/87 on the

tariff and statistical nomenclature and on the Common Customs Tariff

(OJ L 238, 19. 9. 1996, p. 1).

 

 

 

 

ANNEX I

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>

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ANNEX II concerning the introduction of a double-checking system for

the export of certain ECSC and EC steel products from the former

Yugoslav Republic of Macedonia to the European Communities

 

Article 1

1. From the date of entry into force of the Cooperation Agreement

between the European Community and the former Yugoslav Republic of

Macedonia (hereinafter referred to as respectively 'the Agreement`

and 'the Community`), imports into the Community of the products

listed in Appendix I originating in the former Yugoslav Republic of

Macedonia shall be subject to the presentation of a surveillance

document conforming to the model shown in Appendix II issued by the

authorities in the Community.

2. The classification of the products covered by this Protocol is

based on the tariff and statistical nomenclature of the Community

(hereinafter called the 'combined nomenclature`, or in abbreviated

form 'CN`). The origin of the products covered by this Protocol

shall be determined in accordance with the rules in force in the

Community.

3. The competent authorities of the Community undertake to inform

the former Yugoslav Republic of Macedonia of any changes in the

combined nomenclature (CN) in respect of products covered by the

double-checking system before the date of their entry into force in

the Community.

4. Import into the Community of the iron and steel products listed

in Appendix I and which originate in the former Yugoslav Republic of

Macedonia shall, in addition, be subject to the issue of an export

document by the competent authorities of the former Yugoslav

Republic of Macedonia. In order to avoid problems at the end of a

year, presentation by the importer of the original of the export

document must be effected not later than 31 March of the year

following that in which in the goods covered by the document were

shipped.

5. An export document will not be required for goods already shipped

before the date of entry into force of the Agreement, provided that

the destination of such products is not changed from a non-Community

destination and that those products which, under the prior

surveillance regime applicable in 1996, could be imported only on

presentation of a surveillance document are in fact accompanied by

such a document.

6. Shipment is considered to have taken place on the date of loading

onto the exporting means of transport.

7. The export document shall conform to the model shown at Appendix

III. It shall be valid for exports throughout the customs territory

of the Community.

8. The former Yugoslav Republic of Macedonia shall notify the

Commission of the European Communities of the names and addresses of

the appropriate governmental authorities of the former Yugoslav

Republic of Macedonia which are authorized to issue and to verify

export documents together with specimens of the stamps and

signatures they use. The former Yugoslav Republic of Macedonia shall

also notify the Commission of any change in these particulars.

9. Certain technical provisions on the implementation of the

double-checking system are set out in Appendix IV.

 

Article 2

1. The former Yugoslav Republic of Macedonia undertakes to supply

the Community with precise statistical information on the export

documents issued by the authorities of the former Yugoslav Republic

of Macedonia pursuant to Article 1. Such information shall be

transmitted to the Community by the end of the month following the

month to which the statistics relate.

2. The Community undertakes to supply the authorities of the former

Yugoslav Republic of Macedonia with precise statistical information

on surveillance documents issued by Member States in respect of the

products listed in Appendix I. Such information shall be transmitted

to the authorities of the former Yugoslav Republic of Macedonia by

the end of the month following the month to which the statistics

relate.

 

Article 3

If necessary, at the request of either of the Parties, consultations

shall be held on any problems arising from the operation of the

double-checking system. Such consultations shall be held promptly.

Any consultations held under this Article shall be approached by

both Parties in a spirit of cooperation and with a desire to

reconcile the difference between them.

 

Article 4

Any notices to be given hereunder shall be given:

- in respect of the Community, to the Commission of the European

Communities (DG I/D/2 and DG III/C/2),

- in respect of the former Yugoslav Republic of Macedonia, to its

Mission to the European Communities, the Ministry of Foreign Affairs

and the Ministry of Economy.

 

 

 

 

Appendix I to Annex II

 

THE FORMER YUGOSLAV REPUBLIC OF MACEDONA

 

LIST OF PRODUCTS SUBJECT TO DOUBLE-CHECKING

Complete CN heading 7208

Complete CN heading 7209

Complete CN heading 7210

Complete CN heading 7211

Complete CN heading 7212

Complete CN heading 7303

Complete CN heading 7304

Complete CN heading 7305

Complete CN heading 7306

 

 

 

Appendix II to Annex II

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Appendix III to Annex II

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Annex IV to Annex II

 

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA

 

Technical annex on the double-checking system

1. The export documents shall measure 210 × 297 mm. The paper used

shall be white writing paper, sized, not containing mechanical pulp,

and weighing not less than 25 g/m². They shall be made out in

English. If they are completed by hand, entries must be in ink and

in printed script. These documents may comprise additional copies

duly indicated as such. If the documents have several copies only

the top copy is the original. This copy shall be clearly marked as

'original` and other copies as 'copies`. Only the original shall be

accepted by the competent authorities of the Community as being

valid for the control of export to the Community in accordance with

the provisions of the double-checking system.

2. Each document shall bear a standardized serial number, whether or

not printed, by which it can be identified. This number shall be

composed of the following elements:

- a two-digit number identifying the exporting country as follows:

96,

- a two-digit number identifying the intended Member State of

customs clearance as follows:

>TABLE POSITION>

- a one-digit number identifying the year, corresponding to the last

figure in the respective year, e. g. 7 for 1997,

- a two-digit number from 01 to 99, identifying the particular

issuing office concerned in the exporting country,

- a five-digit number running consecutively from 00001 to 99999

allocated to the intended Member State of customs clearance.

3. The export documents shall be valid for four months from the date

of their issue. Export documents may be renewed or prolonged.

4. Since the importer needs to present the original export document

when requesting an import document, export documents should, as far

as possible, be issued in respect of individual commercial

transactions, not global contracts.

5. The former Yugoslav Republic of Macedonia need not show price

information on the export document if there is a genuine need to

protect commercial confidentiality. In such cases, Box 9 of the

export document should indicate the reason for not showing the price

information and that it is available to the competent authorities of

the European Communities on request.

6. Export documents may be issued after the shipment of the products

to which they relate. In such cases they must bear the endorsement

'issued retrospectively`.

7. In the event of theft, loss or destruction of an export document,

the exporter may apply to the competent governmental authority which

issued the document for a duplicate to be made out on the basis of

the export documents in his possession. The duplicate of any such

document so issued shall bear the endorsement 'duplicate`. The

duplicate shall bear the date of the original export document.

8. The competent authorities of the Community shall be informed

immediately of the withdrawal or modification of any export

documents already issued and, where relevant, of the basis for such

action.

 

 

 

PROTOCOL 2 on the definition of the concept of 'originating

products` and methods of administrative cooperation

 

TABLE OF CONTENTS

Page

TITLE I GENERAL PROVISIONS . 65

- Article 1 Definitions . 65

TITLE II DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS` . 65

- Article 2 General requirements . 65

- Article 3 Bilateral cumulation of origin . 65

- Article 4 Wholly obtained products . 66

- Article 5 Sufficiently worked or processed products . 66

- Article 6 Insufficient working or processing operations . 67

- Article 7 Unit of qualification . 67

- Article 8 Accessories, spare parts and tools . 67

- Article 9 Sets . 67

- Article 10 Neutral elements . 67

TITLE III TERRITORIAL REQUIREMENTS . 68

- Article 11 Principle of territoriality . 68

- Article 12 Direct transport . 68

- Article 13 Exhibitions . 68

TITLE IV DRAWBACK OR EXEMPTION . 69

- Article 14 Prohibition of drawback of, or exemption from, customs

duties . 69

TITLE V PROOF OF ORIGIN . 69

- Article 15 General requirements . 69

- Article 16 Procedure for the issue of an EUR.1 movement

certificate . 69

- Article 17 EUR.1 movement certificates issued retrospectively . 70

- Article 18 Issue of a duplicate EUR.1 movement certificate . 70

- Article 19 Issue of EUR.1 movement certificates on the basis of a

proof of origin issued or made out previously . 71

- Article 20 Conditions for making out an invoice declaration . 71

- Article 21 Approved exporter . 71

- Article 22 Validity of proof of origin . 71

- Article 23 Submission of proof of origin . 72

- Article 24 Importation by instalments . 72

- Article 25 Exemptions from proof of origin . 72

- Article 26 Supporting documents . 72

- Article 27 Preservation of proof of origin and supporting

documents . 72

- Article 28 Discrepancies and formal errors . 73

- Article 29 Amounts expressed in ecu . 73

TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION . 73

- Article 30 Mutual assistance . 73

- Article 31 Verification of proofs of origin . 73

- Article 32 Dispute settlement . 74

- Article 33 Penalties . 74

- Article 34 Free zones . 74

TITLE VII CEUTA AND MELILLA . 74

- Article 35 Application of the Protocol . 74

- Article 36 Special conditions . 74

TITLE VIII FINAL PROVISIONS . 75

- Article 37 Amendments to the Protocol . 75

 

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 the former Yugoslav Republic

of Macedonia 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 the Former Yugoslav

Republic of Macedonia;

(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 products incorporated which did not

originate in the country in which those products were obtained;

(j) 'chapters` and 'headings` mean the chapters and the headings

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

Harmonized Commodity Description and Coding System, referred to in

this Protocol as 'the Harmonized 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 the Agreement, the following

products shall be considered as originating in the Community:

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

Article 4 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 5 of this Protocol.

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

products shall be considered as originating in the former Yugoslav

Republic of Macedonia:

(a) products wholly obtained in the former Yugoslav Republic of

Macedonia within the meaning of Article 4 of this Protocol;

(b) products obtained in the former Yugoslav Republic of Macedonia

incorporating materials which have not been wholly obtained there,

provided that such materials have undergone sufficient working or

processing in the former Yugoslav Republic of Macedonia within the

meaning of Article 5 of this Protocol.

 

Article 3 Bilateral cumulation of origin

1. Materials originating in the Community shall be considered as

materials originating in the former Yugoslav Republic of Macedonia

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 that referred to in Article 6 (1) of this Protocol.

2. Materials originating in the former Yugoslav Republic of

Macedonia 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 that referred to in Article 6 (1) of this

Protocol.

 

Article 4 Wholly obtained products

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

Community or the former Yugoslav Republic of Macedonia:

(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 the former

Yugoslav Republic of Macedonia 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 an EC Member State or in the

former Yugoslav Republic of Macedonia;

(b) which sail under the flag of an EC Member State or of the former

Yugoslav Republic of Macedonia;

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

Member States or of the former Yugoslav Republic of Macedonia, 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 EC Member States or of the former Yugoslav Republic

of Macedonia 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 EC Member

States or of the former Yugoslav Republic of Macedonia; and

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

States or of the former Yugoslav Republic of Macedonia.

 

Article 5 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 the 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 Harmonized System.

3. Paragraphs 1 and 2 shall apply except as provided in Article 6.

 

Article 6 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 5 are satisfied:

(a) operations to ensure the preservation of products in good

condition during transport and storage (ventilation, spreading out,

drying, chilling, placing in salt, sulphur dioxide or other aqueous

solutions, removal of damaged parts, and like operations);

(b) simple operations consisting of removal of dust, sifting or

screening, sorting, classifying, matching (including the making-up

of sets of articles), washing, painting, cutting up;

(c) (i) changes of packaging and breaking up and assembly of

packages;

(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing

on cards or boards, etc., and all other simple packaging operations;

 

(d) affixing marks, labels and other like distinguishing signs on

products or their packaging;

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

where one or more components of the mixtures do not meet the

conditions laid down in this Protocol to enable them to be

considered as originating in the Community or the former Yugoslav

Republic of Macedonia;

(f) simple assembly of parts to constitute a complete product;

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

subparagraphs (a) to (f);

(h) slaughter of animals.

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

former Yugoslav Republic of Macedonia 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 7 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 Harmonized System.

Accordingly, it follows that:

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

classified under the terms of the Harmonized 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 Harmonized System, each

product must be taken individually when applying the provisions of

this Protocol.

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

is included with the product for classification purposes, it shall

be included for the purposes of determining origin.

 

Article 8 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 9 Sets

Sets, as defined in General Rule 3 of the Harmonized 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 10 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 11 Principle of territoriality

1. The conditions set out in Title II relative to the acquisition of

originating status must be fulfilled without interruption in the

Community or the former Yugoslav Republic of Macedonia.

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

Yugoslav Republic of Macedonia 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 goods returned are the same goods as those 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.

 

Article 12 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

the former Yugoslav Republic of Macedonia. 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 the former Yugoslav Republic of

Macedonia.

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 13 Exhibitions

1. Originating products, sent for exhibition in another country and

sold after the exhibition for importation in the Community or the

former Yugoslav Republic of Macedonia, 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

the former Yugoslav Republic of Macedonia 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 the former Yugoslav

Republic of Macedonia;

(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 organized 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 14 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 the former Yugoslav Republic of

Macedonia 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 the former Yugoslav Republic of Macedonia 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 the former Yugoslav Republic of Macedonia 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, on 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 7 (2), accessories, spare

parts and tools within the meaning of Article 8 and products in a

set within the meaning of Article 9 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 on export in

accordance with the provisions of the Agreement.

6. Notwithstanding paragraph 1, the former Yugoslav Republic of

Macedonia 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

Harmonized System, or such lower rate as is in force in the former

Yugoslav Republic of Macedonia;

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

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

or such lower rate as is in force in the former Yugoslav Republic of

Macedonia.

The provisions of this paragraph shall apply until 31 December 1998

and may be reviewed by common accord.

 

TITLE V PROOF OF ORIGIN

 

Article 15 General requirements

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

the former Yugoslav Republic of Macedonia, and products originating

in the former Yugoslav Republic of Macedonia shall, on importation

into the Community, benefit from this Agreement on submission of

either:

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

Annex III; or

(b) in the cases specified in Article 20 (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

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

any of the documents referred to above.

 

Article 16 Procedure for the issue of an EUR.1 movement certificate

1. An EUR.1 movement certificate 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 authorized representative.

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

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

certificate shall be prepared to submit at any time, at the request

of the customs authorities of the exporting country where the EUR.1

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

authorities of an EC Member State or the former Yugoslav Republic of

Macedonia if the products concerned can be considered as products

originating in the Community, the former Yugoslav Republic of

Macedonia 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 EUR.1 movement certificate shall be

indicated in box 11 of the certificate.

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

authorities and made available to the exporter as soon as actual

exportation has been effected or ensured.

 

Article 17 EUR.1 movement certificates issued retrospectively

1. Notwithstanding Article 16 (7), an EUR.1 movement certificate 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 an EUR.1 movement certificate 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 EUR.1 movement certificate relates, and state the

reasons for his request.

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

retrospectively only after verifying that the information supplied

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

file.

4. EUR.1 movement certificates issued retrospectively must be

endorsed with one of the following phrases:

'NACHTRÄGLICH AUSGESTELLT`, 'DÉLIVRÉ A POSTERIORI`, 'RILASCIATO A

POSTERIORI`, 'AFGEGEVEN A POSTERIORI`, 'ISSUED RETROSPECTIVELY`,

'UDSTEDT EFTERFŲLGENDE`, 'ÅŹÄĻČÅĶ ÅŹ ŌŁĶ ÕÓŌÅŃŁĶ`, 'EXPEDIDO A

POSTERIORI`, 'EMITIDO A POSTERIORI`, 'ANNETTU JÄLKIKÄTEEN`,

'UTFÄRDAT I EFTERHAND`,

>REFERENCE TO A GRAPHIC>

.

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

the 'Remarks` box of the EUR.1 movement certificate.

 

Article 18 Issue of a duplicate EUR.1 movement certificate

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

certificate, 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:

'DUPLIKAT`, 'DUPLICATA`, 'DUPLICATO`, 'DUPLICAAT`, 'DUPLICATE`,

'ĮĶŌÉĆŃĮÖĻ`, 'DUPLICADO`, 'SEGUNDA VIA`, 'KAKSOISKAPPALE`,

>REFERENCE TO A GRAPHIC>

.

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

the `Remarks' box of the duplicate EUR.1 movement certificate.

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

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

 

Article 19 Issue of EUR.1 movement certificates 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 the former Yugoslav Republic of

Macedonia, it shall be possible to replace the original proof of

origin by one or more EUR.1 movement certificates for the purpose of

sending all or some of these products elsewhere within the Community

or the former Yugoslav Republic of Macedonia. The replacement EUR.1

movement certificate(s) shall be issued by the customs office under

whose control the products are placed.

 

Article 20 Conditions for making out an invoice declaration

1. An invoice declaration as referred to in Article 15 (1) (b) may

be made out:

(a) by an approved exporter within the meaning of Article 21, or

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

packages containing originating products whose total value does not

exceed ECU 6 000.

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

can be considered as products originating in the Community or the

former Yugoslav Republic of Macedonia 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 21 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 21 Approved exporter

1. The customs authorities of the exporting country may authorize

any 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 authorization

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 authorization number which shall appear on the invoice

declaration.

4. The customs authorities shall monitor the use of the

authorization by the approved exporter.

5. The customs authorities may withdraw the authorization 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 authorization.

 

Article 22 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 23 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 24 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 Harmonized System falling within Sections XVI and XVII or

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

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

submitted to the customs authorities on importation of the first

instalment.

 

Article 25 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 C2/CP3 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

ECU 500 in the case of small packages or ECU 1 200 in the case of

products forming part of travellers' personal luggage.

 

Article 26 Supporting documents

The documents referred to in Articles 16 (3) and 20 (3) used for the

purpose of proving that products covered by an EUR.1 movement

certificate or an invoice declaration can be considered as products

originating in the Community or the former Yugoslav Republic of

Macedonia 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 the former Yugoslav Republic

of Macedonia where these documents are used in accordance with

domestic law;

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

Community or the former Yugoslav Republic of Macedonia, issued or

made out in the Community or the former Yugoslav Republic of

Macedonia, where these documents are used in accordance with

domestic law;

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

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

Community or the former Yugoslav Republic of Macedonia in accordance

with this Protocol in accordance this Protocol.

 

Article 27 Preservation of proof of origin and supporting documents

1. The exporter applying for the issue of an EUR.1 movement

certificate shall keep for at least three years the documents

referred to in Article 16 (3).

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

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

documents referred to in Article 20 (3).

3. The customs authorities of the exporting country issuing an EUR.1

movement certificate shall keep for at least three years the

application form referred to in Article 16 (2).

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

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

declarations submitted to them.

 

Article 28 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 29 Amounts expressed in ecu

1. Amounts in the national currency of the exporting country

equivalent to the amounts expressed in ecu shall be fixed by the

exporting country and communicated to the importing countries

through the Commission of the European Communities.

2. When the amounts exceed the corresponding amounts fixed by the

importing country, the latter shall accept them if the products are

invoiced in the currency of the exporting country. When the products

are invoiced in the currency of another EC Member State the

importing country shall recognize the amount notified by the country

concerned.

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

the equivalent in that national currency of the amounts expressed in

ecu as at the first working day in October 1996.

4. The amounts expressed in ecu and their equivalents in the

national currencies of the EC Member States and the former Yugoslav

Republic of Macedonia shall be reviewed by the Cooperation Council

at the request of the Community or the former Yugoslav Republic of

Macedonia. When carrying out this review, the Cooperation Council

shall ensure that there will be no decrease in the amounts to be

used in any national currency and shall furthermore 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 ecu.

 

TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

 

Article 30 Mutual assistance

1. The customs authorities of the EC Member States and of the former

Yugoslav Republic of Macedonia 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 EUR.1 movement

certificates 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 the former Yugoslav Republic of Macedonia shall assist

each other, through the competent customs administrations, in

checking the authenticity of the EUR.1 movement certificates or the

invoice declarations and the correctness of the information given in

these documents.

 

Article 31 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

EUR.1 movement certificate 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 the Former Yugoslav

Republic of Macedonia and fulfil the other requirements of this

Protocol.

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 32 Dispute settlement

Where disputes arise in relation to the verification procedures of

Article 31 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 Cooperation Council.

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 33 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 34 Free zones

1. The Community and the former Yugoslav Republic of Macedonia 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 the former Yugoslav

Republic of Macedonia 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 35 Application of the Protocol

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

Melilla.

2. Products originating in the former Yugoslav Republic of

Macedonia, 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

pursuant to Protocol 2 of the Act of Accession of the Kingdom of

Spain and the Portuguese Republic to the European Communities. The

former Yugoslav Republic of Macedonia 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 36.

 

Article 36 Special conditions

1. Providing they have been transported directly in accordance with

the provisions of Article 12, 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 5 of this Protocol; or that

(ii) the products are originating in the former Yugoslav Republic of

Macedonia 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 6 (1);

(2) products originating in the former Yugoslav Republic of

Macedonia:

(a) products wholly obtained in the former Yugoslav Republic of

Macedonia;

(b) products obtained in the former Yugoslav Republic of Macedonia,

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 5 of this Protocol; or that

(ii) the 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 6 (1).

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

3. The exporter or his authorized representative shall enter 'the

former Yugoslav Republic of Macedonia` and 'Ceuta and Melilla` in

box 2 of EUR.1 movement certificates or on invoice declarations. In

addition, in the case of products originating in Ceuta and Melilla,

this shall be indicated in box 4 of EUR.1 movement certificates 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 37 Amendments to the Protocol

The Cooperation Council 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 5 of the Protocol.

 

 

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

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

columns 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

columns 3 or 4 apply to all products which, under the Harmonized

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 columns 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 5 of the Protocol concerning products

having acquired originating status which are used in the manufacture

of other products apply regardless of whether this status has been

acquired inside the factory where these products are used or in

another factory in the Community or in the former Yugoslav Republic

Macedonia.

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 the Community 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 the Community. 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 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 any one or

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

Example:

The rule for fabrics of heading 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 highest of the percentages given. Furthermore, the

individual percentages must not be exceeded in relation to the

particular materials they apply to.

 

 

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 that have been carded,

combed or otherwise processed but not spun.

4.2. The term 'natural fibres` includes horsehair of heading No

0503, silk of heading Nos 5002 and 5003 as well as the wool fibres,

fine or coarse animal hair of heading Nos 5101 to 5105, the cotton

fibres of heading Nos 5201 to 5203 and the other vegetable fibres of

heading 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

heading Nos 5501 to 5507.

 

 

Note 5:

5.1. Where for a given product in the list a 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, 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 only be

applied 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,

- 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 (metallized 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 that 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 that 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 being 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.

Example:

A carpet with tufts made from both artificial yarns and cotton yarns

and with a jute backing is a mixed product because three basic

textile materials are used. Thus, any non-originating materials that

are at a later stage of manufacture than the rule allows may be

used, provided their total weight does not exceed 10 % of the weight

of the textile materials of the carpet. Thus, both the jute backing

and/or the artificial yarns could be imported at that stage of

manufacture, provided the weight conditions are met.

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. In the case of those textile products which are marked in the

list by a footnote referring 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 rules 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 heading 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 the following operations: processing

with concentrated sulphuric acid, oleum or sulphuric anhydride;

neutralization with alkaline agents; decolorization and purification

with naturally active earth, activated earth, activated charcoal or

bauxite;

(g) polymerization;

(h) alkylation;

(i) isomerization.

7.2. For the purposes of heading 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 the following operations: processing

with concentrated sulphuric acid, oleum or sulphuric anhydride;

neutralization with alkaline agents; decolorization and purification

with naturally active earth, activated earth, activated charcoal or

bauxite;

(g) polymerization;

(h) alkylation;

(ij) isomerization;

(k) in respect of heavy oils falling within heading No ex 2710 only,

desulphurization 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 falling within heading No 2710 only,

deparaffining by a process other than filtering;

(m) in respect of heavy oils falling within 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 decolorization) 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 falling within heading No ex 2710 only,

atmospheric distillation, on condition that less than 30 % of these

products distil, 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

falling within heading No ex 2710 only, treatment by means of a

high-frequency electrical brush-discharge.

7.3. For the purposes of heading 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 content, 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

The products mentioned in the list may not all be covered by the

Agreement. It is therefore necessary to consult the other parts of

the Agreement

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ANNEX III

 

MOVEMENT CERTIFICATE EUR.1 AND APPLICATION FOR A MOVEMENT

CERTIFICATE EUR.1

 

Printing instructions

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

weighing 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 Member States of the Community

and of the former Yugoslav Republic of Macedonia 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.

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ANNEX IV

 

INVOICE DECLARATION

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Version of the former Yugoslav Republic of Macedonia

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PROTOCOL 3 on financial cooperation

THE CONTRACTING PARTIES,

REAFFIRMING their resolve to establish ties of cooperation which

will contribute to the economic development of the former Yugoslav

Republic of Macedonia and promote the strengthening of relations

between the Community and the former Yugoslav Republic of Macedonia,

ANXIOUS to develop to this end the financial cooperation provided

for in the Cooperation Agreement between the European Community and

the former Yugoslav Republic of Macedonia,

HAVE AGREED AS FOLLOWS:

 

 

Article 1

Within the framework of the financial cooperation provided for in

the Cooperation Agreement between the European Community and the

former Yugoslav Republic of Macedonia, the Community shall

participate, in accordance with the conditions specified in this

Protocol, in the financing of projects designed to contribute to the

economic development of the former Yugoslav Republic of Macedonia

and in particular projects of common interest to the Community and

the former Yugoslav Republic of Macedonia. This participation shall

be conditional upon clearance in full by the former Yugoslav

Republic of Macedonia of its outstanding financial obligations

towards the European Investment Bank and the Community.

 

Article 2

For the purposes specified in Article 1, the Community shall ask the

European Investment Bank, hereinafter referred to as 'the Bank` to

make available to the former Yugoslav Republic of Macedonia a total

of ECU 150 million. This amount may be committed up to 31 December

2000 in the form of loans from the Bank's own resources according to

the rules, conditions and procedures laid down in its statute.

These funds may be combined with resources from the Community budget

on the conditions laid down in the Annex.

 

Article 3

1. The total amount provided for in Article 2 shall be used to

part-finance specific capital projects submitted to the Bank with

the agreement of the former Yugoslav Republic of Macedonia by public

or private bodies or enterprises having a registered place of

business in the former Yugoslav Republic of Macedonia or by any

other institution of the former Yugoslav Republic of Macedonia.

2. As far as possible the loans referred to in Article 2 shall be

used for financing projects relating to infrastructure and, as a

matter of first priority, transport infrastructure.

3. (a) Projects shall be appraised for eligibility and loans made in

accordance with the detailed rules, conditions and procedures laid

down by the Bank's statute.

(b) Loans shall be subject to terms as to their duration established

on the basis of the economic and financial characteristics of the

projects for which these loans are intended, also taking into

account the conditions prevailing on the capital markets on which

the Bank obtains its resources.

(c) The interest rate for each loan contract shall be determined in

accordance with the Bank's practice, subject to the provisions laid

down in the Annex.

 

Article 4

1. The amounts to be committed each year shall be distributed as

evenly as possible throughout the period of application of this

Protocol. During the initial period, however, a proportionately

higher amount may be committed.

2. The commitment of the instalments is contingent on verification

by the Community of the capacity of the former Yugoslav Republic of

Macedonia to absorb the loans and the progress being made with

economic reform.

3. If, by the end of the period referred to in Article 2, not all of

the funds have been committed, this period shall be automatically

extended by six months. In that event, the funds shall be used under

the same conditions as provided for in this Protocol.

 

Article 5

Loans made by the Bank for the execution of projects may take the

form of co-financing in which notable participants would be banks of

the former Yugoslav Republic of Macedonia, credit institutions of

the former Yugoslav Republic of Macedonia, the Member States or

third countries, or international financial institutions.

 

Article 6

Enterprises registered under the law of the former Yugoslav Republic

of Macedonia, with or without foreign holdings, shall have access to

the financing provided for under financial cooperation on equal

terms.

 

Article 7

The execution, management and maintenance of projects financed under

financial cooperation between the Community and the former Yugoslav

Republic of Macedonia shall be the responsibility of the

beneficiaries referred to in Article 3 (1).

The Bank shall ensure that its loans are used in accordance with the

agreed allocations and under optimum economic conditions.

 

Article 8

All natural and legal persons coming within the scope of the Treaty

establishing the European Community and all natural and legal

persons of the former Yugoslav Republic of Macedonia may participate

on equal terms in tendering procedures and other procedures for the

award of contracts which may be financed. Such legal persons, formed

in accordance with the law of a Member State of the Community or of

the former Yugoslav Republic of Macedonia must have their registered

offices, their administrative head offices or their principal

establishments in the territories in which the Treaty establishing

the European Community is applied or in the former Yugoslav Republic

of Macedonia; however, where only their registered offices are in

those territories or in the former Yugoslav Republic of Macedonia,

the activities of such legal persons must be effectively and

continuously linked with the economies of those territories or of

the former Yugoslav Republic of Macedonia.

 

Article 9

The former Yugoslav Republic of Macedonia shall apply to contracts

awarded for the execution of projects financed under financial

cooperation, fiscal and customs arrangements at least as favourable

as those applied to most favoured nations and most favoured

international organizations in the field of development.

 

Article 10

The former Yugoslav Republic of Macedonia shall take the necessary

measures to ensure that interest and all other payments due to the

Bank in respect of loans granted under financial cooperation are

exempt from any taxes or levies imposed by the national or local

authorities.

 

Article 11

The provision of a guarantee by the former Yugoslav Republic of

Macedonia, or other sufficient guarantees, shall be required by the

Bank as a condition for granting loans to beneficiaries other than

the former Yugoslav Republic of Macedonia.

 

Article 12

Throughout the duration of the loans granted under this Protocol,

the former Yugoslav Republic of Macedonia shall undertake to make

available to debtors holding such loans and to guarantors of such

loans the foreign exchange necessary for the payment of interest,

commission and other charges and repayment of the principal.

 

Article 13

The results of financial cooperation may be examined by the

Cooperation Council.

 

Article 14

One year before the expiry of this Protocol the Contracting Parties

shall examine what arrangements could be made for financial

cooperation during a possible further period.

 

Article 15

The Annex shall form an integral part of this Protocol.

 

 

 

 

ANNEX concerning Article 2

1. The Community may, subject to the conditions set out below,

commit ECU 20 million from its budgetary resources in the form of

grants for the purpose of providing a two point interest-rate

subsidy on the Bank loans for infrastructure projects which are of

interest to the Community and to the former Yugoslav Republic of

Macedonia.

2. To the extent that these grants concern transport infrastructure

projects, they shall be subject to the conclusion of a mutually

satisfactory agreement between the Community and the former Yugoslav

Republic of Macedonia on the transport sector.

It is noted that Bank loans used to finance transport infrastructure

projects other than those listed below are not eligible for an

interest rate subsidy:

- Roads

- North to south-east motorway (E-75) connecting the Federal

Republic of Yugoslavia (Serbia-Montenegro) to the Hellenic Republic,

particularly the sections Kumanovo to Tabanovce on the border of the

Federal Republic of Yugoslavia (9 km) and Gradsko to Gevgelija on

the border of the Hellenic Republic (73 km),

- Main road (M-5) connecting Kriva Krusha to Medzitlija on the

border of the Hellenic Republic (93 km), via Titov Veles, Prilep and

Bitola, reconstruction and new construction,

- Section of motorway (E-65) connecting Skopje to Tetovo (36 km)

together with bypass of Skopje (25 km).

- Rail/combined transport

- North to south-east railway connecting the Federal Republic of

Yugoslavia (Serbia-Montenegro) to the Hellenic Republic (via Titov

Veles), particularly multimodal terminals at Tabanovce, Miravci and

Gevgelija,

- Multimodal terminal at Bitola (on the N/S branch line connecting

Titov Veles to Kremenica on the border of the Hellenic Republic),

- Railway connecting Kumanovo to Beljakovce (30 km, reconstruction)

and Beljakovce to Deve Bair (54 km, new construction) on the border

of the Republic of Bulgaria with multimodal terminal at Deve Bair

and tunnel at border to be connected by new line (2 km) to existing

line at Gjueshevo in the Republic of Bulgaria.

3. The grants are of an exceptional nature and shall not set a

precedent for financial cooperation between the Community and the

former Yugoslav Republic of Macedonia.

 

 

 

LIST OF DECLARATIONS

The plenipotentiaries of:

THE EUROPEAN COMMUNITY,

of the one part, and of

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA,

of the other part,

on signing, by way of an Exchange of Letters, the Cooperation

Agreement between the European Community and the former Yugoslav

Republic of Macedonia, adopted the following Declarations:

1. Joint Declaration concerning Article 15 of the Agreement;

2. Joint Interpretative Declaration concerning Article 40 of the

Agreement;

3. Declaration of intent by the Contracting Parties on the trade

arrangements between the former Yugoslav Republic of Macedonia and

other countries of South-Eastern Europe;

4. Declaration of intent by the Contracting Parties concerning the

separate agreements on wine and spirits and on textile products;

5. Declaration of intent by the Contracting Parties on future

cooperation in the field of labour,

and took note of:

- the Statements by the European Community and by the former

Yugoslav Republic of Macedonia on the conclusion of readmission

agreements;

and, concerning Protocol 2 on the definition of the concept of

'originating products` and on methods of administrative cooperation,

adopted the following Declarations:

1. Joint Declaration concerning the Principality of Andorra;

2. Joint Declaration concerning the Republic of San Marino,

and, concerning Protocol 3 on financial cooperation, adopted the

following Declarations:

1. Joint Declaration concerning Article 4 of Protocol 3 on financial

cooperation;

2. Declaration by the Community concerning Article 8 of Protocol 3

on financial cooperation;

3. Declaration by the Community on EIB lending.

The Declarations listed above are annexed to this List.

 

 

 

Joint Declaration concerning Article 15 of the Agreement

The Contracting Parties agree that for the first calendar year, if

the Agreement comes into force after 1 January, any concessions

given within the limits of annual ceilings, quotas or reference

quantities will be adjusted pro rata.

 

 

 

Joint Interpretative Declaration concerning Article 40 of the

Agreement

(a) For the purposes of the interpretation and practical application

of this Agreement, the Contracting Parties agree that the cases of

special urgency referred to in Article 40 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 (3) and (4).

(b) The Contracting Parties agree that the 'appropriate measures`

referred to in Article 40 are measures taken in accordance with

international law. If a Party takes a measure in a case of special

urgency pursuant to Article 40, the other Party may avail itself of

the dispute settlement procedure.

 

 

 

Declaration of Intent by the Contracting Parties on the trade

arrangements between the former Yugoslav Republic of Macedonia and

other countries of South-Eastern Europe

1. The Community and the former Yugoslav Republic of Macedonia

consider it essential that economic and trade cooperation between

the countries of South-Eastern Europe be established as quickly as

possible.

2. The Community is prepared to grant cumulation of origin to

certain States in the region which have restored normal economic and

trade cooperation as soon as the administrative cooperation needed

for cumulation to work properly has been established.

3. With this in mind, the former Yugoslav Republic of Macedonia

declares its readiness to enter into negotiations as soon as

possible in order to establish cooperation with other countries in

the region.

 

 

 

Declaration of Intent by the Contracting Parties concerning the

separate agreements on wine and spirits and on textile products

The Community and the former Yugoslav Republic of Macedonia agree

that separate agreements on wine and spirits and on textile products

shall be negotiated as quickly as possible with a view to their

entry into force at the same time as the Cooperation Agreement. In

these negotiations, the Contracting Parties will take into account

the preferential conditions resulting from the Cooperation

Agreement.

 

 

 

Declaration of Intent by the Contracting Parties on future

cooperation in the field of labour

The Community and the former Yugoslav Republic of Macedonia express

their willingness to include provisions concerning the

non-discrimination of each other's nationals legally employed in

their respective territories in the context of a possible future

agreement.

 

 

 

Statements by the European Community and by the former Yugoslav

Republic of Macedonia on the conclusion of readmission agreements

The European Community recalls the importance attached by its Member

States to effective cooperation with third countries to facilitate

the readmission of nationals of the latter who are present illegally

in the territory of a Member State.

The former Yugoslav Republic of Macedonia undertakes to conclude

readmission agreements with the Member States of the European Union

which so request.

 

 

 

Joint Declaration concerning the Principality of Andorra

1. Products originating in the Principality of Andorra falling

within Chapters 25 to 97 of the Harmonized System shall be accepted

by the former Yugoslav Republic of Macedonia as originating in the

Community within the meaning of this Agreement.

2. Protocol 2 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

 

 

 

Joint Declaration concerning the Republic of San Marino

1. Products originating in the Republic of San Marino shall be

accepted by the former Yugoslav Republic of Macedonia as originating

in the Community within the meaning of this Agreement.

2. Protocol 2 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

 

 

 

Joint Declaration concerning Article 4 of Protocol 3 on financial

cooperation

It is understood that the application of Article 4 is dependent upon

the submission to the Bank by the former Yugoslav Republic of

Macedonia of mutually acceptable projects.

 

 

 

Declaration by the Community concerning Article 8 of Protocol 3 on

financial cooperation

The provisions of Protocol 3 on financial cooperation are without

prejudice to the general question of the origin of goods and

services eligible for financing by the Bank from its own resources

and do not, in this connection, affect the exercise by the Bank's

bodies of their powers under the statute of the Bank.

 

 

 

Declaration by the Community on EIB lending

The Community notes that EIB lending, including that in the context

of Protocol 3 on financial cooperation between the Community and the

former Yugoslav Republic of Macedonia, is contingent on its

compatibility with the constraints imposed by the Loan Guarantee

Fund for the European Union's external actions and by the

conclusions of the November 1995 Ecofin Council on EIB lending to

third countries.