21997A0222(01)

 

Agreement between the European Community, of the one part, and the

Government of Denmark and the Home Government of the Faroe Islands,

of the other part

 

Official Journal L 053 , 22/02/1997 P. 0002 - 0135 

 

Dates:

of document:   06/12/1996

of effect:   01/01/1997; Entry into force See Art 40.3; See OJ

L 53 P. 136

of signature:   06/12/1996; Brussels

end of validity:   99/99/9999

 

Authentic language: The official languages ; German ; English ;

Danish ; Spanish ; Finnish ; French ; Greek ; Italian ; Dutch ;

Portuguese ; Swedish ; Other than Community language ; Faroese

Author:

European Community ; Denmark ; Faroe Islands

 

Subject matter: Commercial policy ; External relations ; Fisheries

policy

Directory code: 04202000 ; 11401040

EUROVOC descriptor: customs duties ; economic activity ; Denmark ;

EC trade agreement ; Faeroes

 

Legal basis:

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

192E228-P2F1.............. Adoption

Amendment to:

291A1231(01)...... Repeal........ DP1/1/97

295A0310(01)...... Repeal........ DP1/1/97

Amended by:

Adopted by.... 397D0126..........

Amended by.... 298D0325(01)...... Completion PROT.1 from 01/05/1998

Amended by.... 298D0926(01)...... Amendment PROT 4 ART.1 from

01/10/1998

Completed by.. 299A1130(01)...... DPDATEFF

Amended by.... 299D0714(01)...... Replacement PROT.1 from 01/08/1999

Amended by.... 201D0814(01)...... Amendment PROT 1 ANN from

01/09/2001

Amended by.... 202D0306.......... Addition PROT 3 ART 20 BI from

01/01/2002

Subsequent related instruments:

Amendment proposed by 501SC0905.........

Amendment proposed by 504SC1444.........

 

 

 

AGREEMENT between the European Community, of the one part, and the

Government of Denmark and the Home Government of the Faroe Islands,

of the other part

THE EUROPEAN COMMUNITY,

of the one part, and

THE GOVERNMENT OF DENMARK AND THE HOME GOVERNMENT OF THE FAROE

ISLANDS,

of the other part,

RECALLING the status of the Faeroes as a self-governing integral

part of one of the Member States of the Community;

RECALLING the resolution of the Council of 4 February 1974 on the

problems of the Faeroes;

CONSIDERING the vital importance for the Faeroes of fisheries, which

constitute their essential economic activity, fish and fishery

products being their main export articles;

CONSIDERING the importance of the fisheries relationship laid down

in the Agreement on fisheries between the Contracting Parties, who

confirm that the trade aspects of this Agreement should not affect

the functioning of the Fisheries Agreement and that, consequently,

the volume of the mutual fisheries possibilities under that

Agreement should continue to be maintained at a satisfactory level;

DESIRING to consolidate and to extend the economic relations

existing between the Community and the Faeroes and to ensure, with

due regard for fair conditions of competition, the harmonious

development of their commerce for the purpose of contributing to the

work of constructing Europe;

RESOLVED progressively to eliminate the obstacles to substantially

all their trade, in accordance with the provisions of the General

Agreement on Tariffs and Trade (GATT) 1994 concerning the

establishment of free trade areas;

DECLARING their readiness to examine, in the light of any relevant

factor, and in particular of developments in the Community, the

possibility of developing and deepening their relations where it

would appear to be useful in the interests of their economies to

extend them to fields not covered by this Agreement;

CONSIDERING that, to this end, an Agreement between the European

Economic Community, of the one part, and the Government of Denmark

and the Home Government of the Faroe Islands, of the other part

(hereafter referred to as the 'initial Agreement`) was signed on 2

December 1991;

CONSIDERING that an Agreement in the form of an Exchange of Letters

between the European Community, of the one part, and the Government

of Denmark and the Home Government of the Faroe Islands, of the

other part, amending Tables I and II of the Annex to Protocol 1 of

the initial Agreement (hereafter referred to as the 'Agreement in

the form of an Exchange of Letters`) was signed on 8 March 1995;

CONSIDERING that, pursuant to the accession of the Republic of

Austria, the Republic of Finland and the Kingdom of Sweden to the

European Union on 1 January 1995, the arrangements applicable to

trade in fish and fishery products between the Faeroes and the

Community should be adjusted in order to maintain trade flows

between the Faeroes, on the one hand, and the new Member States, on

the other;

CONSIDERING that, as a result of the adoption by the Community of a

common definition of origin for petroleum products, it is necessary

to make adjustments to the provisions affecting these products;

CONSIDERING that, in order to take account of certain developments

in trade between the Community and the Member States of EFTA, it is

necessary to make adjustments to the provisions concerning the

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

administrative cooperation;

CONSIDERING that, in order to take account of the specific

production of fish feed on the Faeroes, it is necessary to make

adjustments to the provisions applicable to imports of certain

agricultural products;

CONSIDERING that, in order to help ensure its correct functioning, a

Protocol on mutual administrative assistance in customs matters

should be incorporated into this Agreement;

CONSIDERING that, in order to conform with certain modifications to

the nomenclature of the customs tariffs of the Contracting Parties

affecting products referred to in the initial Agreement, it is

necessary to update the tariff nomenclature of these products;

CONSIDERING that, in order to provide for more flexibility, it is

appropriate to empower the Joint Committee to decide on amendments

to the provisions of the Protocols to this Agreement;

CONSIDERING that, for the sake of clarity, the initial Agreement and

the Agreement in the form of an Exchange of Letters should be

replaced by a composite new text in the form of this Agreement;

TAKING INTO ACCOUNT that the bilateral trade Agreements between

Finland and Sweden and the Faeroes cease to be in force on the entry

into force of this Agreement;

HAVE DECIDED, in pursuit of these objectives and considering that no

provisions of this Agreement may be interpreted as exempting the

Contracting Parties from the obligations which are incumbent on them

under other international agreements,

TO CONCLUDE THIS AGREEMENT:

 

 

Article 1

The aim of this Agreement is:

(a) to promote through the expansion of reciprocal trade the

harmonious development of economic relations between the Community

and the Faeroes and thus to foster in the Community and in the

Faeroes the advance of economic activity, the improvement of living

and employment conditions, and increased productivity and financial

stability,

(b) to provide fair conditions of competition for trade between the

Contracting Parties,

(c) to contribute in this way, by the removal of barriers to trade,

to the harmonious development and expansion of world trade.

 

Article 2

This Agreement shall apply to products originating in the Community

or the Faeroes:

(i) which fall within Chapters 25 to 97 of the Harmonized System,

other than those listed in Annex II to the Treaty establishing the

European Community, and other than those listed in Annex I to this

Agreement;

(ii) which are specified in Protocols 1, 2 and 4 to this Agreement,

with due regard to the arrangements provided for in those Protocols.

 

Article 3

No new customs duty on imports shall be introduced in trade between

the Community and the Faeroes.

 

Article 4

1. The Community shall abolish customs duties on imports from the

Faeroes.

2. The Faeroes shall abolish customs duties on imports from the

Community: to this end Annex II sets out the provisions contained in

the customs and fiscal legislation of the Faeroes.

 

Article 5

The provisions concerning the abolition of customs duties on imports

shall apply also to import duties of a fiscal nature.

The Faeroes may replace an import duty of a fiscal nature or the

fiscal element of an import duty by an internal tax.

 

Article 6

No new charge having an effect equivalent to a customs duty shall be

introduced in trade between the Community and the Faeroes.

Charges having an effect equivalent to customs duties on imports in

trade between the Community and the Faeroes shall be abolished.

 

Article 7

No customs duty on exports or charge having equivalent effect shall

be introduced in trade between the Community and the Faeroes.

Customs duties on exports and charges having equivalent effect shall

be abolished.

 

Article 8

Protocol 1 lays down the tariff treatment and arrangements

applicable to certain fish and fishery products released for free

circulation in the Community or imported into the Faeroes.

 

Article 9

Protocol 2 lays down the tariff treatment and arrangements

applicable to certain products obtained by processing agricultural

products.

 

Article 10

1. In the event of specific rules being established as a result of

the implementation of its agricultural policy or of any alteration

of the current rules, the Contracting Party in question may adapt

the arrangements resulting from this Agreement in respect of the

products which are the subject of those rules or alterations.

2. In such cases the Contracting Party in question shall take due

account of the interests of the other Contracting Party. To this end

the Contracting Parties may consult each other within the Joint

Committee established by Article 31.

 

Article 11

Protocol 3 lays down the definition of the concept of 'originating

products` and methods of administrative cooperation.

 

Article 12

A Contracting Party which is considering the reduction of the

effective level of its duties or charges having equivalent effect

applicable to third countries benefiting from most-favoured-nation

treatment, or which is considering the suspension of their

application, shall, as far as may be practicable, notify the Joint

Committee not less than 30 days before such reduction or suspension

comes into effect. It shall take note of any representations by the

other Contracting Party regarding any distortions which might result

therefrom.

 

Article 13

1. No new quantitative restriction on imports or measures having

equivalent effect shall be introduced in trade between the Community

and the Faeroes.

2. The Contracting Parties shall abolish quantitative restrictions

on imports and any measures having an effect equivalent to

quantitative restrictions on imports.

 

Article 14

1. The Community reserves the right to modify the arrangements

applicable to the petroleum products falling within headings Nos

2710, 2711, ex 2712 (excluding ozokerite, lignite wax and peat wax)

and 2713 of the combined nomenclature on adoption of decisions under

the common commercial policy for petroleum products or on

establishment of a common energy policy.

In this event, the Community shall take due account of the interests

of the Faeroes; to this end it shall inform the Joint Committee,

which shall meet under the conditions set out in Article 33 (2).

2. The Faeroes reserves the right to take similar action should it

be faced with like situations.

3. Subject to paragraphs 1 and 2, this Agreement shall not prejudice

the non-tariff rules applied to imports of petroleum products.

 

Article 15

1. The Contracting Parties declare their readiness to foster, so far

as their agricultural policies allow, the harmonious development of

trade in agricultural products to which this Agreement does not

apply.

2. The Contracting Parties shall apply their rules in veterinary,

health and plant health matters in a non-discriminatory fashion and

shall not introduce any new measures that have the effect of unduly

obstructing trade.

3. The Contracting Parties shall examine, under the conditions set

out in Article 35, any difficulties that might arise in their trade

in agricultural products and shall endeavour to seek appropriate

solutions.

 

Article 16

The Home Government of the Faroe Islands shall take the necessary

control measures to ensure the correct application of the reference

price fixed or to be fixed by the Community, referred to in Article

2 of Protocol 1.

The Contracting Parties shall ensure the correct application of the

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

administrative cooperation, laid down in Protocol 3.

 

Article 17

Protocol 4 lays down the special provisions applicable to imports of

certain agricultural products other than those listed in Protocol 1.

 

Article 18

Protocol 5 lays down the provisions on mutual assistance between

administrative authorities in customs matters.

 

Article 19

The Contracting Parties reaffirm their commitment to grant each

other the most-favoured-nation treatment in accordance with the GATT

1994.

This Agreement shall not preclude the maintenance or establishment

of customs unions, free trade areas or arrangements for frontier

trade, except in so far as they alter the trade arrangements

provided for in this Agreement, in particular the provisions

concerning rules of origin.

 

Article 20

The Contracting Parties shall refrain from any measure or practice

of an internal fiscal nature which, whether directly of indirectly,

discriminates 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 taxation in excess of the

amount of direct or indirect taxation imposed on them.

 

Article 21

Payments relating to trade in goods and the transfer of such

payments to the Member State of the Community in which the creditor

is resident or to the Faeroes shall be free from any restrictions.

 

Article 22

This Agreement shall not preclude prohibitions or restrictions on

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

morality, law and order or public security, the protection of life

and health of humans, animals or plants, the protection of national

treasures of artistic, historic or archaeological value, the

protection of industrial and commercial property, or rules relating

to gold or silver.

Such prohibitions or restrictions must not, however, constitute a

means of arbitrary discrimination or a disguised restriction on

trade between the Contracting Parties.

 

Article 23

Nothing in this Agreement shall prevent a Contracting Party from

taking any measures:

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

information contrary to its essential security interests;

(b) which relate to trade in arms, munitions or war materials or to

research, development or production indispensable for defence

purposes, provided that such measures do not impair the conditions

of competition in respect of products not intended for specifically

military purposes;

(c) which it considers essential to its own security in time of war

or serious international tension.

 

Article 24

1. The Contracting Parties shall refrain from any measure likely to

jeopardize the fulfilment of the objectives of this Agreement.

2. They shall take any general or specific measures required to

fulfil their obligations under this Agreement.

If either Contracting Party considers that the other Contracting

Party has failed to fulfil an obligation under this Agreement, it

may take appropriate measures under the conditions and in accordance

with the procedures laid down in Article 29.

 

Article 25

1. The following are incompatible with the proper functioning of

this Agreement in so far as they may affect trade between the

Community and the Faeroes:

(i) all agreements between undertakings, decisions by associations

of undertakings and concerted practices between undertakings which

have as their object or effect the prevention, restriction or

distortion of competition as regards the production of or trade in

goods;

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

territories of the Contracting Parties as a whole or in a

substantial part thereof;

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

competition by favouring certain undertakings or the production of

certain goods.

2. Should a Contracting Party consider that a given practice is

incompatible with this Article, it may take appropriate measures

under the conditions and in accordance with the procedures laid down

in Article 29.

 

Article 26

Where an increase in imports of a given product is or is likely to

be seriously detrimental to any production activity carried on in

the territory of one of the Contracting Parties and where this

increase is due to:

(i) the partial or total reduction in the importing Contracting

Party, as provided for in this Agreement, of customs duties and

charges having equivalent effect levied on the product in question;

and

(ii) the fact that the duties or charges having equivalent effect

levied by the exporting Contracting Party on imports of raw

materials or intermediate products used in the manufacture of the

product in question are significantly lower than the corresponding

duties or charges levied by the importing Contracting Party:

the Contracting Party concerned may take appropriate measures under

the conditions and in accordance with the procedures laid down in

Article 29.

 

Article 27

If one of the Contracting Parties finds that dumping is taking place

in trade with the other Contracting Party, it may take appropriate

measures against this practice in accordance with the Agreement on

Implementation of Article VI of the GATT 1994, under the conditions

and in accordance with the procedures laid down in Article 29.

 

Article 28

If serious disturbances arise in any sector of the economy or if

difficulties arise which could bring about serious deterioration in

the economic situation of a region, the Contracting Party concerned

may take appropriate measures under the conditions and in accordance

with the procedures laid down in Article 29.

 

Article 29

1. In the event of a Contracting Party subjecting imports of

products liable to give rise to the difficulties referred to in

Articles 26 and 28 to an administrative procedure, the purpose of

which is to provide rapid information on the trend of trade flows,

it shall inform the other Contracting Party.

2. In the cases specified in Articles 24 to 28, before taking the

measures provided for therein or, in cases to which paragraph 3 (d)

of this Article applies, as soon as possible, the Contracting Party

in question shall supply the Joint Committee with all relevant

information required for a thorough examination of the situation

with a view to seeking a solution acceptable to the Contracting

Parties.

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

least disturb the functioning of this Agreement.

The safeguard measures shall be notified immediately to the Joint

Committee and shall be the subject of periodical consultations

within the Committee, particularly with a view to their abolition as

soon as circumstances permit.

3. For the implementation of paragraph 2, the following provisions

shall apply:

(a) as regards Article 25, either Contracting Party may refer the

matter to the Joint Committee if it considers that a given practice

is incompatible with the proper functioning of this Agreement within

the meaning of Article 25 (1).

The Contracting Parties shall provide the Joint Committee with all

relevant information and shall give it the assistance it requires in

order to examine the case and, where appropriate, to eliminate the

practice objected to.

If the Contracting Party in question fails to put an end to the

practice objected to within the period fixed by the Joint Committee,

or in the absence of agreement in the Joint Committee within three

months of the matter being referred to it, the Contracting Party

concerned may adopt any safeguard measures it considers necessary to

deal with the serious difficulties resulting from the practices in

question; in particular it may withdraw tariff concessions;

(b) as regards Article 26, the difficulties arising from the

situation referred to in that Article shall be referred for

examination to the Joint Committee, which may take any decision

needed to put an end to such difficulties.

If the Joint Committee or the exporting Contracting Party has not

taken a decision putting an end to the difficulties within 30 days

of the matter being referred, the importing Contracting Party is

authorized to levy a compensatory charge on the product imported.

The compensatory charge shall be calculated according to the

incidence on the value of the goods in question of the tariff

disparities in respect of the raw materials or intermediate products

incorporated therein;

(c) as regards Article 27, consultation in the Joint Committee shall

take place before the Contracting Party concerned takes the

appropriate measures;

(d) where exceptional circumstances requiring immediate action make

prior examination impossible, the Contracting Party concerned may,

in the situations specified in Articles 26, 27 and 28 and also in

the case of export aids having a direct and immediate incidence on

trade, apply forthwith the precautionary measures strictly necessary

to remedy the situation.

 

Article 30

Where one or more Member States of the Community or the Faeroes is

in difficulties or is seriously threatened with difficulties as

regards its balance of payments, the Contracting Party concerned may

take the necessary safeguard measures. It shall inform the other

Contracting Party forthwith.

 

Article 31

1. A Joint Committee is hereby established which shall be

responsible for the administration of this Agreement and shall

ensure its proper implementation. For this purpose, it shall make

recommendations and take decisions in the cases provided for in this

Agreement. These decisions shall be put into effect by the

Contracting Parties in accordance with their own rules.

2. For the purpose of the proper implementation of this Agreement

the Contracting Parties shall exchange information and, at the

request of either Party, shall hold consultations within the Joint

Committee.

3. The Joint Committee shall adopt its own rules of procedure.

 

Article 32

1. The Joint Committee shall consist of representatives of the

Contracting Parties.

2. The Joint Committee shall act by mutual agreement.

 

Article 33

1. Each Contracting Party shall preside in turn over the Joint

Committee, in accordance with the arrangements to be laid down in

its rules of procedure.

2. The Chairman shall convene meetings of the Joint Committee at

least once a year in order to review the general functioning of this

Agreement.

The Joint Committee shall, in addition, meet whenever special

circumstances so require, at the request of either Contracting

Party, in accordance with the conditions to be laid down in its

rules of procedure.

3. The Joint Committee may decide to set up any working party that

can assist it in carrying out its duties.

 

Article 34

1. The Joint Committee may amend the provisions of the Protocols to

this Agreement.

2. In the event of modifications of the nomenclature of the customs

tariffs of the Contracting Parties affecting products referred to in

this Agreement, the Joint Committee may adapt the tariff

nomenclature of these products to conform with such modifications.

 

Article 35

1. Where a Contracting Party considers that it would be useful in

the common interest of both Contracting Parties to develop the

relations established by this Agreement by extending them to fields

not covered thereby, it shall submit a reasoned request to the other

Contracting Party.

The Contracting Parties may instruct the Joint Committee to examine

this request and, where appropriate, to make recommendations to

them, particularly with a view to opening negotiations.

2. The agreements resulting from the negotiations referred to in

paragraph 1 will be subject to ratification or approval by the

Contracting Parties in accordance with their own procedures.

 

Article 36

At the request of the Faeroes, the Community will consider

- improving the access possibilities for specific products,

- extending its tariff concessions for Faeroese fishery products to

include new fish species caught by Faeroese fishing vessels based

and operating in the North Atlantic, or to include fishery products

pertaining thereto not currently produced by the Faeroese fishing

industry. These new fish species or fishery products could be

imported free of duty into the Community, subject to the necessary

quantitative limitations should the new fish species or fishery

products be of a sensitive nature in the Community.

 

Article 37

The Annexes and Protocols to this Agreement shall form an integral

part thereof.

 

Article 38

Either Contracting Party may denounce this Agreement by notifying

the other Contracting Party. This Agreement shall cease to be in

force 12 months after the date of such notification.

 

Article 39

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

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 Faeroes.

 

Article 40

1. This Agreement is drawn up in duplicate in the Danish, Dutch,

English, Finnish, French, German, Greek, Italian, Portuguese,

Spanish, Swedish and Faeroese languages, each of these texts being

equally authentic.

2. It will be approved by the Contracting Parties in accordance with

their own procedures.

3. It shall enter into force on 1 January 1997, provided that the

Contracting Parties have notified each other before that date that

the procedures necessary to this end have been completed. After this

date, this Agreement shall enter into force on the first day of the

third month following such notification.

4. The provisions of the following Agreements shall cease to be in

force on the entry into force of this Agreement:

- the Agreement between the European Economic Community, of the one

part, and the Government of Denmark and the Home Government of the

Faroe Islands, of the other part, signed on 2 December 1991,

- the Agreement in the form of an exchange of letters between the

European Community, of the one part, and the Government of Denmark

and the Home Government of the Faroe Islands, of the other part,

amending Tables I and II of the Annex to Protocol 1 of the

abovementioned Agreement, signed on 8 March 1995,

- the bilateral trade agreements between Finland and Sweden and the

Faeroes.

 

Hecho en Bruselas, el seis de diciembre de mil novecientos noventa y

seis.

Udfördiget i Bruxelles den sjette december nitten hundrede og seks

og halvfems.

Geschehen zu BrŽssel am sechsten Dezember

neunzehnhundertsechsundneunzig.

øółżõ ėĮłĖ ĀęįžąūūõĖ, ėĮłĖ ąžł Äõśõüņęč˙į ščūłń õżżłńśŽėłń õżõżČżĮń

ąžł.

Done at Brussels on the sixth day of December in the year one

thousand nine hundred and ninety-six.

Fait š Bruxelles, le six dłcembre mil neuf cent quatre-vingt-seize.

Fatto a Bruxelles, addü sei dicembre millenovecentonovantasei.

Gedaan te Brussel, de zesde december negentienhonderd zesennegentig.

Feito em Bruxelas, em seis de Dezembro de mil novecentos e noventa a

seis.

Tehty Brysselissō kuudentena pōivōnō joulukuuta vuonna

tuhatyhdeksōnsataayhdeksōnkymmentōkuusi.

Som skedde i Bryssel den sjōtte december nittonhundranittiosex.

GjŲrdur ż BrŪssel, sötta desembur nżtjanhundra s og n´ytiseks.

Por la Comunidad Europea

For Det Europöiske Föllesskab

FŽr die Europōische Gemeinschaft

Ćłń Į÷ż ÅįęųĘńŪśČ Ź˙łżŽĮ÷Įń

For the European Community

Pour la Communautł europłenne

Per la Comunitš europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisŠn puolesta

Põ Europeiska gemenskapens vōgnar

Fyri Europeiska Felagsskapin

>REFERENCE TO A GRAPHIC>

Por el Gobierno de Dinamarca y el Gobierno local de las Islas Feroe

For Danmarks regering og FörŲernes landsstyre

FŽr die Regierung von Dōnemark und die Landesregierung der FōrŠer

Ćłń Į÷ż śįņąęż÷ė÷ Į÷Ė ÄńżčńĖ śńł Į÷ż Į˙ĘłśČ śįņąęż÷ė÷ Įųż ĶČėųż

ÖõęŽõ

For the Government of Denmark and the Home Government of the Faroe

Islands

Pour le gouvernement du Danemark et le gouvernement local des žles

Fłroł

Per il governo della Danimarca e per il governo locale delle isole

FörŲer

Voor de Regering van Denemarken en de Landsregering van de FaerŠer

Pelo Governo da Dinamarca e pelo Governo Regional das Ilhas Faroł

Tanskan hallituksen ja Fōrsaarten paikallishallituksen puolesta

Põ Danmarks regerings och FōrŠarnas landsstyres vōgnar

Fyri rżkisstjėrn Danmarkar og FŲroya landsst´yri

>REFERENCE TO A GRAPHIC>

 

 

 

ANNEX I

>TABLE POSITION>

 

 

 

ANNEX II

For the purposes of Article 4 (2) to this Agreement, the customs and

fiscal legislation of the Föroes contains the following provisions:

(a) a customs tariff based on the Harmonized System and respecting

the GATT obligations of Denmark;

(b) a duty-free treatment for goods of Community origin, with the

exceptions set out in Protocols 2 and 4;

(c) a system of indirect taxation based on the following elements:

- a value-added tax (VAT, based on the same principles as those

which apply in the Community, including non-discrimination of

imported goods; and

- a system of excise duties, levied equally on domestic production

and imported goods.

 

 

 

PROTOCOL 1 concerning the tariff treatment and arrangements

applicable to certain fish and fishery products released for free

circulation in the Community or imported into the Faeroes

 

Article 1

As regards the products listed in the Annex to this Protocol and

originating in the Faeroes:

1. no new customs duties shall be introduced in trade between the

Community and the Faeroes;

2. the customs duties and other conditions to be applied on import

into the Community shall be as indicated in the Annex.

 

Article 2

The preferential duty rates indicated in the Annex apply only if the

free-at-frontier price, which is determined by the Member States in

accordance with Article 22 of Regulation (EEC) No 3759/92 (OJ No L

388, 31. 12. 1992, p. 1), as last amended by Regulation (EC) No

3318/94 (OJ No L 350, 31. 12. 1994, p. 15), is at least equal to the

reference price fixed, or to be fixed, by the Community for the

products under consideration or the categories of the products

concerned.

 

Article 3

For the purpose of eliminating customs duties, reference ceilings

are established in the Annex for certain products originating in the

Faeroes.

Should imports of these products exceed the reference ceiling, the

Community may introduce the full customs duty.

 

Article 4

The Faeroes shall abolish tariffs and duties on imports of fish and

fishery products originating in the Community.

 

 

 

 

ANNEX

The customs duties and other conditions to be applied on import into

the Community of products originating in and coming from the Faeroes

shall be as indicated below.

>TABLE POSITION>

>TABLE POSITION>

 

 

 

PROTOCOL 2 concerning the tariff treatment and arrangements

applicable to certain products obtained by processing agricultural

products

 

Article 1

In order to take account of differences in the cost of the

agricultural products incorporated in the goods specified in the

table annexed to this Protocol, this Agreement does not preclude:

(i) the levying, on import, of an agricultural component or fixed

amount, or the application of internal price compensation measures;

(ii) the application of measures adopted on export.

 

Article 2

The Community shall apply the customs duties on imports originating

in the Faeroes as indicated in the table annexed to this Protocol.

 

Article 3

The Faeroes shall abolish tariffs and duties on imports of processed

agricultural products originating in the Community, with the

exceptions mentioned in Protocol 4, Article 2.

Should the Faeroes introduce such measures for processed

agricultural products as mentioned in Article 1 of this Protocol,

the Community shall be duly notified.

 

>TABLE POSITION>

 

 

 

PROTOCOL 3 concerning the definition of the concept of 'originating

products` and methods of administrative cooperation

TITLE I GENERAL PROVISIONS

Article 1 Definitions

TITLE II DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS`

Article 2 General requirements

Article 3 Bilateral cumulation of origin

Article 4 Wholly obtained products

Article 5 Sufficiently worked or processed products

Article 6 Insufficient working or processing operations

Article 7 Unit of qualification

Article 8 Accessories, spare parts and tools

Article 9 Sets

Article 10 Neutral elements

TITLE III TERRITORIAL REQUIREMENTS

Article 11 Principle of territoriality

Article 12 Direct transport

Article 13 Exhibitions

TITLE IV DRAWBACK OR EXEMPTION

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

duties

TITLE V PROOF OF ORIGIN

Article 15 General requirements

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

Article 17 EUR.1 movement certificates issued retrospectively

Article 18 Issue of a duplicate EUR.1 movement certificate

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

proof of origin issued or made out previously

Article 20 Conditions for making out an invoice declaration

Article 21 Approved exporter

Article 22 Validity of proof of origin

Article 23 Submission of proof of origin

Article 24 Importation by instalments

Article 25 Exemptions from proof or origin

Article 26 Supporting documents

Article 27 Preservation of proof of origin and supporting documents

Article 28 Discrepancies and formal errors

Article 29 Amounts expressed in ecu

TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 30 Mutual assistance

Article 31 Verification of proofs of origin

Article 32 Dispute settlement

Article 33 Penalties

Article 34 Free zones

TITLE VII CEUTA AND MELILLA

Article 35 Application of the Protocol

Article 36 Special conditions

 

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 Faeroes 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 Faeroes;

(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 this Agreement, the following

products shall be considered as originating in the Community:

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

Article 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 this Agreement, the following

products shall be considered as originating in the Faeroes:

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

Article 4 of this Protocol;

(b) products obtained in the Faeroes incorporating materials which

have not been wholly obtained there, provided that such materials

have undergone sufficient working or processing in the Faeroes

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 Faeroes 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 Faeroes 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 Faeroes:

(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 Faeroes 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

subparagraphs 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

Faeroes;

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

Faeroes;

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

Member States or of the Faeroes, 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 Faeroes 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 Faeroes; and

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

States or of the Faeroes.

 

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 this Agreement, the working or processing which must be carried

out on non-originating materials used in manufacturing and apply

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

a product, which has acquired originating status by fulfilling the

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

product, the conditions applicable to the product in which it is

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

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

manufacture.

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

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

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

that:

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

the product;

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

of non-originating materials are not exceeded through the

application of this paragraph.

This paragraph shall not apply to products falling within Chapters

50 to 63 of the 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 Faeroes;

(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

Faeroes 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 Faeroes.

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

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 Faeroes. 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 Faeroes.

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

Faeroes 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 Faeroes 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 Faeroes;

(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 Faeroes 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 Faeroes 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 Faeroes 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 upon export in

accordance with the provisions of the Agreement.

 

TITLE V PROOF OF ORIGIN

 

Article 15 General requirements

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

the Faeroes and products originating in the Faeroes shall, on

importation into the Community, benefit from this Agreement upon

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 at 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 Faeroes if the products

concerned can be considered as products originating in the Community

or the Faeroes 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`,

'DELIVRE 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`,

'GIVIN EFTIRFYLGJANDI`.

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:

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

'ĮĶŌÉĆŃĮÖĻ`, 'DUPLICADO`, 'SEGUNDA VIA`, 'IAKSOISKAPPALE`, 'TVITAK`.

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 Faeroes, 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 Faeroes. 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

Faeroes 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 this

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 Faeroes 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 Faeroes where these

documents are used in accordance with domestic law;

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

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

Faeroes, 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 Faeroes in accordance with 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 this 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 European Commission.

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 Faeroes shall be

reviewed by the Joint Committee at the request of the Community or

the Faeroes. When carrying out this review, the Joint Committee

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

Faeroes shall provide each other, through the European Commission,

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 Faeroes 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 of 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 Faeroes 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 Joint Committee. In all cases the settlement of disputes between

the importer and the customs authorities of the importing country

shall be under the legislation of the said country.

 

Article 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 preferential treatment for products.

 

Article 34 Free zones

1. The Community and the Faeroes 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 Faeroes 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 movement 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 Faeroes, 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 Faeroes 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) those products are originating in the Faeroes 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 Faeroes:

(a) products wholly obtained in the Faeroes;

(b) products obtained in the Faeroes, 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) those products are originating in Ceuta and Melilla or the

Community within the meaning of this Protocol, provided that they

have been submitted to working or processing which goes beyond the

insufficient working or processing referred to in Article 6 (1).

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

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

Faeroes` 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.

 

 

 

 

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 Faeroes.

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 per cent 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 per cent

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 per cent 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 per cent 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 per cent 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 per cent 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 per cent 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 per cent 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 per cent 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.

 

 

 

 

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

>TABLE POSITION>

 

 

 

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 Faroe Islands 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.

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

 

 

 

ANNEX IV

 

INVOICE DECLARATION

>START OF GRAPHIC>

The invoice declaration, the text of which is given below, must be

made out in accordance with the footnotes. However, the footnotes do

not have to be reproduced.

English version

The exporter of the products covered by this document (customs

authorization No . . . (1)) declares that, except where otherwise

clearly indicated, these products are of . . . preferential origin

(2).

Spanish version

El exportador de los productos incluidos en el presente documento

(autorizaciėn aduanera no . . . (1)) declara que, salvo indicaciėn

en sentido contrario, estos productos gozan de un origen

preferencial . . . (2).

Danish version

EksportŲren af varer, der er omfattet af nörvörende dokument,

(toldmyndighedernes tilladelse nr. . . . (1)), erklörer, at varerne,

medmindre andet tydeligt er angivet, har pröferenceoprindelse i . .

. (2).

German version

Der AusfŽhrer (Ermōchtigter AusfŽhrer; Bewilligungs-Nr. . . . (1)),

der Waren, auf die sich dieses Handelspapier bezieht, erklōrt, dač

diese Waren, soweit nicht anders angegeben, prōferenzbegŽnstigte . .

. Ursprungswaren sind (2).

Greek version

Ļ õžńóųóąńĖ Įųż Ęę˙ŪŽżĮųż Ę˙į śńūžĘĮ˙żĮńł ńĘŽ Į˙ Ęńꎿ ąóóęńŠ˙

(Ąōõłń Įõūųżõč˙į įĘ' ńęłų. . . . (1)) ō÷ūžżõł ŽĮł, õśĮŽĖ õĄż

ō÷ūžżõĮńł ėńŠžĖ ĄūūųĖ, Įń Ęę˙ŪŽżĮń ńįĮĄ õčżńł Ęę˙Įłü÷ėłńśČĖ

śńĮńóųóČĖ . . . (2).

French version

L'exportateur des produits couverts par le prłsent document

(autorisation douaniųre no . . . (1)), dłclare que, sauf indication

claire du contraire, ces produits ont l'origine prłfłrentielle . . .

(2).

Italian version

L'esportatore delle merci contemplate nel presente documento

(autorizzazione doganale n. . . . (1)) dichiara che, salvo

indicazione contraria, le merci sono di origine preferenziale . . .

(2).

Dutch version

De exporteur van de goederen waarop dit document van toepassing is

(douanevergunning nr. . . . (1)), verklaart dat, behoudens

uitdrukkelijke andersluidende vermelding, deze goederen van

preferentiūle . . . oorsprong zijn (2).

Portuguese version

O abaixo assinado, exportador dos produtos cobertos pelo presente

documento (autoriza÷óo aduaneira no. . . . (1)), declara que, salvo

expressamente indicado em contrńrio, estes produtos sóo de origem

preferencial . . . (2).

(1) When the invoice declaration is made out by an approved exporter

within the meaning of Article 21 of the Protocol, the authorization

number of the approved exporter must be entered in this space. When

the invoice declaration is not made out by an approved exporter, the

words in brackets shall be omitted or the space left blank.(2)

Origin of products to be indicated. When the invoice declaration

relates in whole or in part, to products originating in Ceuta and

Melilla within the meaning of Article 36 of the Protocol, the

exporter must clearly indicate them in the document on which the

declaration is made out by means of the symbol 'CM'.Finnish version

Tōssō asiakirjassa mainittujen tuotteiden viejō (tullin lupan:o . .

. (1)) ilmoittaa, ettō nōmō tuotteet ovat, ellei toisin ole selvōsti

merkitty, etuuskohteluun oikeutettuja . . . alkuperōtuotteita (2).

Swedish version

ExportŠren av de varor som omfattas av detta dokument

(tullmyndighetens tillstõnd nr. . . . (1)) fŠrsōkrar att dessa

varor, om inte annat tydligt markerats, har fŠrmõnsberōttigande . .

. ursprung (2).

Faeroese version

Śtflytarin av vŲrunum, sum hetta skjal fevnir um (tollvaldsins loyvi

nr. . . . (1)) vńttar, at um ikki naka??d anna??d t´y??diliga er

tilskila??d, eru hesar vŲrur upprunavŲrur . . . (2).

. (3)

(Place and date)

. (4)

(Signature of the exporter; in addition the name of the person

signing the declaration has to be indicated in clear script)

(1) When the invoice declaration is made out by an approved exporter

within the meaning of Article 21 of the Protocol, the authorization

number of the approved exporter must be entered in this space. When

the invoice declaration is not made out by an approved exporter, the

words in brackets shall be omitted or the space left blank.(2)

Origin of products to be indicated. When the invoice declaration

relates in whole or in part, to products originating in Ceuta and

Melilla within the meaning of Article 36 of the Protocol, the

exporter must clearly indicate them in the document on which the

declaration is made out by means of the symbol 'CM'.(3) These

indications may be omitted if the information is contained on the

document itself.(4) See Article 20 (5) of the Protocol. In cases

where the exporter is not required to sign, the exemption of

signature also implies the exemption of the name of the

signatory.>END OF GRAPHIC>

 

 

 

PROTOCOL 4 concerning the special provisions applicable to imports

of certain agricultural products other than those listed in Protocol

1

 

Article 1

The Community shall grant to products originating in and coming from

the Faeroes the following tariff quotas:

>TABLE POSITION>

 

Article 2

The Faeroes shall grant freedom from tariffs and duties to goods of

Community origin, falling within Chapters 1 to 24 in the Harmonized

System, with the following exceptions:

>TABLE POSITION>

 

 

 

 

PROTOCOL 5 on mutual assistance between administrative authorities

in customs matters

 

Article 1 Definitions

For the purposes of this Protocol:

(a) 'customs legislation` shall mean any legal or regulatory

provision adopted by the Contracting Parties governing the import,

export, and transit of goods and their placing under any customs

procedure, including measures of prohibition, restriction and

control;

(b) 'applicant authority`, shall mean a competent administrative

authority which has been appointed by a Contracting Party for this

purpose and which makes a request for assistance in customs matters;

 

(c) 'requested authority`, shall mean a competent administrative

authority which has been appointed by a Contracting Party for this

purpose and which receives a request for assistance in customs

matters;

(d) 'personal data`, shall mean all information relating to an

identified or identifiable individual.

 

Article 2 Scope

1. The Contracting Parties shall assist each other, in the areas

within their jurisdiction, in the manner and under the conditions

laid down in this Protocol, in ensuring that the customs legislation

is correctly applied, in particular by the prevention, detection and

investigation of operations in breach of that legislation.

2. Assistance in customs matters, as provided for in this Protocol,

shall apply to any administrative authority of the Contracting

Parties which is competent for the application of this Protocol. It

shall not prejudice the rules governing mutual assistance in

criminal matters. Nor shall it cover information obtained under

powers exercised at the request of the judicial authorities, except

where communication of such information has the prior authorization

of the said authorities.

 

Article 3 Assistance on request

1. At the request of the applicant authority, the requested

authority shall furnish it with all relevant information which may

enable it to ensure compliance with customs legislation, including

information regarding operations noted or planned which are or might

be in breach of such legislation.

2. At the request of the applicant authority, the requested

authority shall inform it whether goods exported from the territory

of one of the Contracting Parties have been properly imported into

the territory of the other Party, specifying, where appropriate, the

customs procedure applied to the goods.

3. At the request of the applicant authority, the requested

authority shall, within the framework of its laws, take the

necessary steps to ensure special surveillance of:

(a) natural or legal persons of whom there are reasonable grounds

for believing that they are or have been in breach of customs

legislation;

(b) places where goods are stored in a way that gives grounds for

suspecting that they are intended to supply operations in breach of

customs legislation;

(c) movements of goods notified as possibly giving rise to breaches

of customs legislation;

(d) means of transport for which there are reasonable grounds for

believing that they have been, are or may be used in operations in

breach of customs legislation.

 

Article 4 Spontaneous assistance

The Contracting Parties shall provide each other, at their own

initiative and in accordance with their laws, rules and other legal

instruments, with assistance if they consider that to be necessary

for the correct application of customs legislation, particularly

when they obtain information pertaining to:

- operations which are or appear to be in breach of such legislation

and which may be of interest to the other Contracting Party,

- new means or methods employed in carrying out such operations,

- goods known to be subject to breaches of customs legislation.

 

Article 5 Delivery/notification

At the request of the applicant authority, the requested authority

shall, in accordance with its legislation, take all necessary

measures in order:

- to deliver all documents,

- to notify all decisions,

falling within the scope of this Protocol to an addressee, residing

or established in its territory. In such a case, Article 6 (3) shall

apply.

 

Article 6 Form and substance of requests for assistance

1. Requests pursuant to this Protocol shall be made in writing. They

shall be accompanied by the documents necessary to enable compliance

with the request. When required because of the urgency of the

situation, oral requests may be accepted, but must be confirmed in

writing immediately.

2. Requests pursuant to paragraph 1 shall include the following

information:

(a) the applicant authority making the request;

(b) the measure requested;

(c) the object of and the reason for the request;

(d) the laws, rules and other legal elements involved;

(e) indications as exact and comprehensive as possible on the

natural or legal persons who are the target of the investigations;

(f) a summary of the relevant facts and of the enquiries already

carried out, except in cases provided for in Article 5.

3. Requests shall be submitted in an official language of the

requested authority or in a language acceptable to that authority.

4. If a request does not meet the formal requirements, its

correction or completion may be requested; precautionary measures

may, however, be ordered.

 

Article 7 Execution of requests

1. In order to comply with a request for assistance, the requested

authority or, when the latter cannot act on its own, the

administrative department to which the request has been addressed by

this authority, shall proceed, within the limits of its competence

and available resources, as though it were acting on its own account

or at the request of other authorities of that same Contracting

Party, by supplying information already possessed, by carrying out

appropriate enquiries or by arranging for them to be carried out.

2. Requests for assistance shall be executed in accordance with the

laws, rules and other legal instruments of the requested Contracting

Party.

3. Duly authorized officials of a Contracting Party may, with the

agreement of the other Contracting Party involved and subject to the

conditions laid down by the latter, obtain from the offices of the

requested authority or other authority for which the requested

authority is responsible, information relating to operations which

are or may be in breach of customs legislation which the applicant

authority needs for the purposes of this Protocol.

4. Officials of a Contracting Party may, with the agreement of the

other Contracting Party involved and subject to the conditions laid

down by the latter, be present at enquiries carried out in the

latter's territory.

 

Article 8 Form in which information is to be communicated

1. The requested authority shall communicate results of enquiries to

the applicant authority in the form of documents, certified copies

of documents, reports and the like.

2. The documents provided for in paragraph 1 may be replaced by

computerized information produced in any form for the same purpose.

3. Original files and documents shall be requested only in cases

where certified copies would be insufficient. Originals which have

been transmitted shall be returned at the earliest opportunity.

 

Article 9 Exceptions to the obligation to provide assistance

1. The Contracting Parties may refuse to give assistance as provided

for in this Protocol, where to do so would:

(a) be likely to prejudice the sovereignty of the Faeroes or that of

a Member State of the Community which has been asked to provide

assistance under this Protocol; or

(b) be likely to prejudice public policy, security or other

essential interests, in particular in the cases referred to under

Article 10 (2); or

(c) involve currency or tax regulations other than customs

legislation; or

(d) violate an industrial, commercial or professional secret.

2. Where the applicant authority requests assistance which it would

itself be unable to provide if so asked, it shall draw attention to

that fact in its request. It shall then be for the requested

authority to decide how to respond to such a request.

3. If assistance is refused, the decision and the reasons therefor

must be notified to the applicant authority without delay.

 

Article 10 Information exchange and confidentiality

1. Any information communicated in whatsoever form pursuant to this

Protocol shall be of a confidential or restricted nature, depending

on the rules applicable in each of the Contracting Parties. It shall

be covered by the obligation of official secrecy and shall enjoy the

protection extended to similar information under the relevant laws

of the Contracting Party which received it and the corresponding

provisions applying to the Community institutions.

2. Personal data may be exchanged only where the receiving

Contracting Party undertakes to protect such data in at least an

equivalent way to the one applicable to that particular case in the

supplying Contracting Party.

3. Information obtained shall be used solely for the purposes of

this Protocol. Where one of the Contracting Parties requests the use

of such information for other purposes, it shall ask for the prior

written consent of the authority which furnished the information.

Such use shall then be subject to any restrictions laid down by that

authority.

4. Paragraph 3 shall not impede the use of information in any

judicial or administrative proceedings subsequently instituted for

failure to comply with customs legislation. The competent authority

which supplied that information shall be notified of such use.

5. The Contracting Parties may, in their records of evidence,

reports and testimonies and in proceedings and charges brought

before the courts, use as evidence information obtained and

documents consulted in accordance with the provisions of this

Protocol.

 

Article 11 Experts and witnesses

An official of a requested authority may be authorized to appear,

within the limitations of the authorization granted, as an expert or

witness in judicial or administrative proceedings regarding the

matters covered by this Protocol in the jurisdiction of the other

Contracting Party, and produce such objects, documents or

authenticated copies thereof, as may be needed for the proceedings.

The request for an appearance must indicate specifically on what

matters and by virtue of what title or qualification the official

will be questioned.

 

Article 12 Assistance expenses

The Contracting Parties shall waive all claims on each other for the

reimbursement of expenses incurred pursuant to this Protocol,

except, as appropriate, for expenses to experts and witnesses and to

interpreters and translators who are not public service employees.

 

Article 13 Application

1. The application of this Protocol shall be entrusted to the

central customs authorities of the Faeroes on the one hand and the

competent services of the Commission of the European Communities

and, where appropriate, the customs authorities of the Member States

of the European Community on the other. They shall decide on all

practical measures and arrangements necessary for its application,

taking into consideration the rules in force in the field of data

protection.

2. The Contracting Parties shall consult each other and subsequently

keep each other informed of the detailed rules of implementation

which are adopted in accordance with the provisions of this

Protocol.

 

Article 14 Complementarity

Without prejudice to Article 10, any agreements on mutual assistance

which have been or may be concluded between one or more Member

States of the European Community and the Faeroes shall not prejudice

Community provisions governing the communication between the

competent services of the Commission and the customs authorities of

the Member States of any information obtained in customs matters

which could be of Community interest.

 

 

 

 

JOINT DECLARATION concerning the review of the Agreement in keeping

with the development of EC-EFTA trade relations

If the Community - in the context of the Agreement on the European

Economic Area - grants concessions to the EFTA-EEA countries going

beyond those granted to the Faeroes in areas covered by this

Agreement, the Community will, on request from the Faeroes, consider

in a positive spirit, case-by-case, to what extent and on what basis

corresponding concessions could be offered to the Faeroes.

If agreements or arrangements are concluded between the Faeroes and

the Member States of EFTA whereby the Faeroes grant concessions to

EFTA countries going beyond those granted to the Community in areas

covered by this Agreement, the Faeroes will, on request from the

Community, consider in a positive spirit, case-by-case, to what

extent and on what basis corresponding concessions could be offered

to the Community.

 

 

 

JOINT DECLARATIONS concerning Protocol 3 to the Agreement

 

I. POSSIBILITY TO CUMULATE WITH MATERIALS FROM EFTA COUNTRIES

The Contracting Parties agree to examine the feasibility and

economic interest of including provisions in Protocol 3 concerning

the possibility to cumulate with materials from EFTA countries.

 

II. TRANSITIONAL PERIOD CONCERNING THE ISSUING OR MAKING OUT OF

DOCUMENTS RELATING TO THE PROOF OF ORIGIN ISSUED WITHIN THE

FRAMEWORK OF THE INITIAL AGREEMENT SIGNED ON 2 DECEMBER 1991

1. Until 31 December 1997, the competent customs authorities of the

Community and of the Faeroes shall accept as valid proof of origin

within the meaning of Protocol 3:

(i) EUR.1 movement certificates, endorsed beforehand with the stamp

of the competent customs office of the exporting State;

(ii) EUR.1 movement certificates, issued within the context of this

Agreement, endorsed by an approved exporter with a special stamp

which has been approved by the customs authorities of the exporting

State;

(iii) EUR.2 forms, issued within the context of this Agreement.

2. Requests for subsequent verification of documents referred to

above shall be accepted by the competent customs authorities of the

Community and of the Faeroes for a period of two years after the

issuing and making out of the proof of origin concerned. These

verifications shall be carried out in accordance with Title VI of

Protocol 3 to this Agreement.

 

III. 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 Faeroes as originating in the Community within the meaning of

the Agreement.

2. Protocol 3 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

 

IV. REPUBLIC OF SAN MARINO

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

accepted by the Faeroes as originating in the Community within the

meaning of the Agreement.

2. Protocol 3 shall apply mutatis mutandis for the purpose of

defining the originating status of the abovementioned products.

 

 

 

DECLARATION BY THE COMMUNITY concerning Article 24 (1) of the

Agreement

The Community declares that, in the context of the autonomous

implementation of Article 24 (1) of the Agreement which is incumbent

on the Contracting Parties, it will assess any practices contrary to

that Article on the basis of criteria arising from the application

of the rules of Articles 85, 86, 90 and 92 of the Treaty

establishing the European Community.

 

 

 

DECLARATION BY THE COMMUNITY concerning the regional application of

certain provisions of the Agreement

The Community declares that the application of any measures it may

take under Articles 24, 25, 26, 27 or 28 of the Agreement, in

accordance with the procedure and pursuant to the arrangements set

out in Article 29, or pursuant to Article 30, may be limited to one

of its regions by virtue of Community rules.

 

 

 

DECLARATION BY DENMARK AND THE FAEROES concerning Article 36 of the

Agreement

In accordance with Article 36 of the Agreement, the Community will,

at the request of the Faeroes, consider improving the access

possibilities for specific products.

It is the view of the Faeroes that this Article needs a

qualification to serve its purpose for a progressive development of

trade between the parties and the Faeroes therefore appeals to the

Community to undertake serious consideration of access possibilities

when quotas and ceilings of such products are proved to be

exhausted.