Council of the European Union Brussels, 16 February 2016 (OR. en)

Transcription

1 Council of the European Union Brussels, 16 February 2016 (OR. en) Interinstitutional File: 2016/0038 (NLE) 6127/16 ADD 10 PROPOSAL From: date of receipt: 11 February 2016 To: ACP 27 WTO 32 COAFR 36 RELEX 110 Secretary-General of the European Commission, signed by Mr Jdi AYET PUIGARNAU, Direct Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union. Cion doc.: COM(2016) 64 final - Annex 5 Subject: ANNEX to the Proposal f a Council Decision on the conclusion of the Economic Partnership Agreement (EPA) between the East African Community (EAC) Partner States, of the one part, and the European Union and its Member States, of the other part Delegations will find attached document COM(2016) 64 final - Annex 5. Encl.: COM(2016) 64 final - Annex /16 ADD 10 AL/br DG C 1 EN

2 EUROPEAN COMMISSION Brussels, COM(2016) 64 final ANNEX 5 ANNEX to the Proposal f a Council Decision on the conclusion of the Economic Partnership Agreement (EPA) between the East African Community (EAC) Partner States, of the one part, and the European Union and its Member States, of the other part EN EN

3 PROTOCOL 1 AND 2 PROTOCOL 1 CONCERNING THE DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" AND METHODS OF ADMINISTRATIVE COOPERATION EN 2 EN

4 Index TITLE I: General Provisions ARTICLE 1. Definitions TITLE II: Definition of the concept of "iginating s" ARTICLES 2. General requirements 3. Wking processing of materials whose impt into is MFN duty free and quota free 4. Cumulation in Partner States 5. Cumulation in 6. Cumulation with other countries benefiting from duty-free and quota-free access to the market of 7. Wholly obtained s 8. Sufficiently wked processed s 9. Insufficient wking processing operations 10. Unit of qualification 11. Accessies, spare parts and tools 12. Sets 13. Neutral elements TITLE III: Territial requirements ARTICLES 14. Principle of territiality 15. n alteration EN 3 EN

5 16. Exhibitions TITLE IV: Proof of igin ARTICLES 17. General requirements 18. Procedure f the issue of a movement certificate EUR Movement certificates EUR 1 issued retrospectively 20. Issue of a duplicate movement certificate EUR Issue of movement certificates EUR 1 on the basis of a proof of igin issued made out previously 22. Conditions f making out an igin declaration 23. Approved expter 24. Validity of proof of igin 25. Submission of proof of igin 26. Imptation by instalments 27. Exemptions from proof of igin 28. Infmation procedure f cumulation purposes 29. Suppting documents 30. Preservation of proof of igin and suppting documents 31. Discrepancies and fmal errs 32. Amounts expressed in euro TITLE V: Arrangements f administrative cooperation ARTICLES 33. Administrative conditions f s to benefit from this Agreement 34. tification of customs authities EN 4 EN

6 35. Methods of administrative cooperation 36. Verification of proof of igin 37. Verification of suppliers' declarations 38. Dispute settlement 39. Penalties 40. Derogations TITLE VI: Ceuta and Melilla ARTICLE 41. Special conditions TITLE VII: Final Provisions ARTICLES 42. Revision and application of rules of igin 43. Amendment of the Protocol 44. Annexes 45. Implementation of the Protocol ANNEXES ANNEX I TO PROTOCOL 1: ANNEX II TO PROTOCOL 1: ANNEX III TO PROTOCOL 1: ANNEX IV TO PROTOCOL 1: INTRODUCTORY NOTES TO THE LIST IN 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 FORM FOR MOVEMENT CERTIFICATE ORIGIN DECLARATION EN 5 EN

7 ANNEX V(A) TO PROTOCOL 1: ANNEX V(B) TO PROTOCOL 1 ANNEX V(C) TO PROTOCOL 1 ANNEX V(D) TO PROTOCOL 1: ANNEX VI TO PROTOCOL 1: ANNEX VII TO PROTOCOL 1: ANNEX VIII TO PROTOCOL 1 ANNEX IX TO PROTOCOL 1: ANNEX X TO PROTOCOL 1: SUPPLIER DECLARATION FOR PRODUCTS HAVING PREFERENTIAL ORIGIN STATUS SUPPLIER DECLARATION FOR PRODUCTS NOT HAVING PREFERENTIAL ORIGIN STATUS LONG-TERM SUPPLIER S DECLARATION FOR PRODUCTS HAVING PREFERENTIAL ORIGIN STATUS TO BE USED EXCLUSIVELY FOR CUMULATION AS PROVIDED FOR IN ARTICLE 28(6) LONG-TERM SUPPLIER S DECLARATION FOR PRODUCTS NOT HAVING PREFERENTIAL ORIGIN STATUS TO BE USED EXCLUSIVELY FOR CUMULATION AS PROVIDED FOR IN ARTICLE 28(6) INFORMATION CERTIFICATE FORM FOR APPLICATION FOR A DEROGATION OVERSEAS COUNTRIES AND TERRITORIES PRODUCTS FOR WHICH THE CUMULATION PROVISIONS REFERRED TO IN ARTICLE 4 APPLY AFTER 1 OCTOBER 2015 TEMPLATE ON ADMINISTRATIVE COOPERATION JOINT DECLARATION CONCERNING THE PRINCIPALITY OF ANDORRA JOINT DECLARATION CONCERNING THE REPUBLIC OF SAN MARINO EN 6 EN

8 TITLE I GENERAL PROVISIONS ARTICLE 1 Definitions F the purposes of this Protocol: (a) (b) (c) (d) (e) (f) (g) ACP means Africa, Caribbean and Pacific States; "chapters" and "s" mean the chapters and the four-digit s used in the nomenclature which makes up the Harmonized Commodity Description and Coding System, referred to in this Protocol as "the Harmonized System" "HS"; "classified" refers to the classification of a material under a particular ; "EU" means the European Union; "consignment" means s which are either sent simultaneously from one expter to one consignee covered by a single transpt document covering their shipment from the expter to the consignee, in the absence of such a document, by a single invoice; "customs value" means the value as determined in accdance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation); "ex-wks" price means the price paid f ex-wks to the manufacturer in the EU in an EAC Partner State in whose undertaking the last wking processing is carried out, provided that the price includes the value and all other costs related to its ion, minus any internal taxes which are, may be repaid when obtained is expted. Where the actual price paid does not reflect all costs related to the manufacturing of the which are actually incurred in the beneficiary country, the ex-wks price means the sum of those costs, minus any internal taxes which are, may be, repaid when the obtained is expted. F the purpose of the previous paragraphs, where the last wking processing has been subcontracted to a manufacturer, the term manufacturer refers to the enterprise that has employed the sub-contract. (h) expter means any natural legal person who expts goods to the territy of an EAC Partner State of the European Union, who is able to prove the igin of the good, whether not he is the manufacturer and whether not he himself carries out the expt fmalities; EN 7 EN

9 (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) "goods" means both materials and s; "manufacture" means any kind of wking processing including assembly specific operations; "material" means any ingredient, raw material, component part, etc., used in the manufacture of ; non-iginating materials means materials that do not qualify as iginating under this Protocol; "" means being manufactured, even if it is intended f later use in another manufacturing operation; "producer" includes among others: mining, manufacturing agricultural enterprise any individual grower craftsman; "value of materials" means the customs value at the time of imptation of the noniginating,, if this is not known and cannot be ascertained, the first ascertainable price paid f the materials in the European Union in Partner States; "value added" shall be taken to be the ex-wks a finished minus the customs value materials impted from third countries where the customs value of the impted material is not known cannot be ascertained, the first ascertainable price paid f the materials in the European Union in one of Partner States shall prevail; "territies" includes territial waters; "OCTs" means the Overseas Countries and Territies as defined in Annex VIII; "conventional duties are the most favoured nation tariffs applied on goods impted from third countries; these conventional duties exclude the autonomous tariff suspensions of duty and WTO tariff quotas; "Origin declaration" is a statement given by the expter on an invoice, a delivery note any other commercial document which describes s concerned in sufficient detail to enable them to be identified; the text of the igin declaration appears in Annex IV; other ACP States means all the ACP States with the exception of Partner States; this Agreement means the Economic Partnership Agreement between the European Union and its Member States, of the one part, and Partner States, of the other part. TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" EN 8 EN

10 ARTICLE 2 General requirements 1. F the purpose of this Agreement, the following s shall be considered as iginating in the European Union: (a) (b) s wholly obtained in within the meaning of Article 7 of this Protocol; s obtained in incpating materials which have not been wholly obtained there, provided that such materials have undergone sufficient wking processing in within the meaning of Article F the purpose of this Agreement, the following s shall be considered as iginating in an EAC Partner State: (a) (b) s wholly obtained in an EAC Partner State within the meaning of Article 7 of this Protocol; s obtained in an EAC Partner State incpating materials which have not been wholly obtained there, provided that such materials have undergone sufficient wking processing in that EAC Partner State within the meaning of Article 8. ARTICLE 3 Wking processing of materials whose impt into the European Union is MFN duty free and quota free 1. Without prejudice to the provisions of Article 2(2), non-iginating materials which at imptation to are free of customs duties by means of application of conventional duties of the most-favoured nation tariff in accdance with its Common Customs Tariff shall be considered as materials iginating in an EAC State when incpated into a obtained there. It shall not be necessary that such materials have undergone sufficient wking processing, provided they have undergone wking processing going beyond that referred to in Article 9(1). 2. Movement certificates EUR 1 (in Box/Field 7) igin declarations issued by application of paragraph 1 shall bear the following entry: 'Application of Article 3.1 of Protocol 1 to -EAC EPA'. 3. The EU shall notify yearly to the Special Committee on Customs and Trade Facilitation referred to in Article 29 of this Agreement and hereinafter referred to as "the Committee" the list of materials to which the provisions of this Article shall apply. 4. The cumulation provided f in this Article shall not apply to materials: EN 9 EN

11 (a) (b) which at imptation to are subject to antidumping countervailing duties when iginating from the country which is subject to these antidumping countervailing duties 1 ; classified in subs of the Harmonized system which include also other tariff lines at 8 digits which are not free of customs duties by means of application of conventional rates of the most-favoured nation tariff in accdance with its Common Customs Tariff. ARTICLE 4 Cumulation in Partner States 1. Without prejudice to the provisions of Article 2(2), s shall be considered as iginating in an EAC Partner State if they are produced there, incpating materials iginating in, materials iginating in another ACP State which are entitled to duty free quota free treatment upon imptation in, materials iginating in the OCTs in the other EAC Partner States, provided the wking processing carried out in that EAC Partner State goes beyond the operations referred to in Article 9(1). It shall not be necessary f such materials to have undergone sufficient wking processing. 2. Where the wking processing carried out in Partner States does not go beyond the operations referred to in Article 9(1), obtained shall be considered as iginating in that EAC Partner States only where the value added there is greater than the value of the iginating in any of the other countries territies. If this is not so, obtained shall be considered as iginating in the country territy which accounts f the highest value of iginating in the manufacture of the final. The igin of the materials iginating in other ACP State and in the OCTs shall be determined accding to the rules of igin applicable in the framewk of 's preferential arrangements with these countries and territies and in accdance with Article F materials as defined in paragraph 1 and notwithstanding Article 2(2)(b), wking processing carried out in, in the other EAC Partner States, in the other ACP States in the OCTs shall be considered as having been carried out in an EAC Partner State when s produced undergo subsequent wking processing in this EAC Partner State. Where the wking processing carried out in an EAC State does not go beyond the operations referred to in Article 9(1), obtained shall be considered as iginating in that EAC State only where the value added there is greater than the value of the in any one of the other countries territies. If this is not so, the 1 F the purpose of the implementation of this specific exclusion, non preferential rules of igin applicable at bder should apply. EN 10 EN

12 obtained shall be considered as iginating in the country territy which accounts f the highest value of in the manufacture. The igin of the final shall be determined accding to the rules of igin of this Protocol and in accdance with Article The EU shall notify to the Special Committee on Customs and Trade Facilitation established by Article 29 of this Agreement the list of materials f which cumulation provided f in paragraphs 1 and 3 shall not apply. After the notification, each Party shall make the list public, accding to its internal procedures. 5. F the purpose of implementing cumulation between Partner States, other EPA States and the OCTs, as provided f in the other EPAs and in the OCT Decision, and Partner States supplying the materials shall provide administrative cooperation to the other countries territies referred to in this Article accding to the terms set out in Title V of this Protocol. 6. The cumulation provided in this Article may only be applied provided that all the countries and territies involved in the acquisition of the have entered into an undertaking with each other, using the template in Annex X, which ensures the crect implementation of this Article and includes a reference to the use of appropriate proofs of igin: (i) (ii) to comply and ensure compliance with this Article; to provide the administrative cooperation necessary to ensure the crect implementation of this Article and its provisions on cumulation both with regard to and between themselves; (iii) the undertakings have been notified to the Commission of by the Secretariat of EPA states another competent body representing the countries territies signaty of the undertaking. 7. The cumulation provided in this Article shall not be applicable to s listed in Annex IX. Without prejudice to this paragraph, the cumulation provided f in this Article may only be applied after 1 October 2015 f s listed in Annex IX when the in the manufacture of such s are iginating, the wking processing is carried out in another ACP State. 8. The cumulation provided f in this Article shall not apply to materials: (a) of Harmonised Systems Headings 1604 and 1605 iginating in the Pacific States that have concluded an EPA by use of Article 6.6 of Protocol II to the Interim Partnership Agreement between the European Community, of the one part, and the Pacific States, of the other part 2 ; 2 Council Decision of 13 July 2009 (EC) 729/2009. EN 11 EN

13 (b) of Harmonised Systems Headings 1604 and 1605 iginating in the Pacific States that have concluded an EPA by use of any future provision of a comprehensive Economic Partnership Agreement between and Pacific States. ARTICLE 5 Cumulation in the European Union 1. Without prejudice to the provisions of Article 2(1), s shall be considered as iginating in if they are produced there, incpating materials iginating in an EAC Partner State, in the other ACP States with which applies an Economic Partnership Agreement in the OCTs, provided the wking processing carried out in the European Union goes beyond the operations referred to in Article 9(1). It shall not be necessary f such materials to have undergone sufficient wking processing. Where the wking processing carried out in the European Union does not go beyond the operations referred to in Article 9(1), produced shall be considered as iginating in only where the value added there is greater than the value of the iginating in any one of the other countries territies referred to in paragraph 1. If this is not so, obtained shall be considered as iginating in the country territy which accounts f the highest value of iginating in the manufacture in. The igin of the materials iginating in other ACP States with which applies an Economic Partnership Agreement in the OCTs shall be determined accding to the rules of igin applicable in the framewk of 's preferential arrangements with these countries and territies and in accdance with Article Without prejudice to the provisions to Article 2(1)(b), wking processing carried out in an EAC Partner State, in the other ACP States with which applies an Economic Partnership Agreement in the OCTs shall be considered as having been carried out in when s obtained there have undergone subsequent wking processing. 3. Where the wking processing carried out in does not go beyond the operations referred to in Article 9(1), obtained shall be considered as iginating in only where the value added there is greater than the value of the in any one of the other countries territies. If this is not so, obtained shall be considered as iginating in the country territy which accounts f the highest value of in the manufacture. 4. The igin of the final shall be determined accding to the rules of igin of this Protocol and in accdance with Article 28. The cumulation provided in this Article may only be applied provided that: (a) all the countries and territies involved in the acquisition of the and the country of destination have concluded an arrangement agreement on EN 12 EN

14 administrative co-operation which ensures a crect implementation of this Article and includes a reference to the use of appropriate proofs of igin; (b) shall provide Partner States, through Secretariat, details of agreements on administrative co-operation with the other countries territies referred to in this Article. The European Commission shall publish in the Official Journal of the European Union (C series) and Partner States shall publish accding to their own procedures the date on which the cumulation provided f in this Article may be applied with those countries territies listed in this Article which have fulfilled the necessary requirements. 5. The cumulation provided f in this Article shall not apply to materials: (a) (b) of Harmonised Systems Headings 1604 and 1605 iginating in the EPA Pacific States by use of Article 6.6 of Protocol II to the Interim Partnership Agreement between the European Community, on the one part, and the Pacific States, on the other part 3 ; of Harmonised Systems Headings 1604 and 1605 iginating in the Pacific States by use of any future provision of a comprehensive Economic Partnership Agreement between and Pacific ACP States. ARTICLE 6 Cumulation with other countries benefiting from duty-free quota-free access to market 1. Without prejudice to the provisions of Article 2(2), materials iginating in countries and territies: (a) (b) benefiting from the "Special arrangement f least developed countries" of the generalised system of preferences 4 ; benefiting from duty-free quota-free access to market under the general provisions of the generalised system of preferences 5 ; shall be considered as materials iginating in an EAC Partner State when incpated into a obtained there Council Decision of 13 July 2009 (EC) 729/2009. Cf. Articles 11 and 12 of Council regulation (EC) N 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences f the period from 1 January 2009 to 31 December 2011 and subsequent amending and cresponding legal acts. Cf. Article 6 of Council regulation (EC) N 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences f the period from 1 January 2009 to 31 December 2011, and subsequent amending and cresponding legal acts; materials that benefit from duty free treatment by virtue of the special incentive arrangement f sustainable development and good governance of Article 7 to 10 of the same Council Regulation, but not under the general arrangement of Article 6 of the same Council Regulation, are not covered by this provision. EN 13 EN

15 It shall not be necessary that such materials have undergone sufficient wking processing, provided they have undergone wking processing going beyond that referred to in Article 9(1). A, in which these materials are incpated, in case it also includes non-iginating materials, will have to undergo sufficient wking processing in accdance with Article 8 to be considered as iginating in an EAC Partner State The igin of the the countries territies concerned shall be determined accding to the rules of igin applicable in the framewk of 's preferential arrangements with those countries and territies and in accdance with Article The cumulation provided f in this paragraph shall not apply to: (a) (b) (c) (d) materials which at imptation to are subject to antidumping countervailing duties when iginating from the country which is subject to these antidumping countervailing duties 6 ; materials classified in tariff subs of the Harmonized system which include also other tariff lines at 8 digits which are not free of customs duties by means of application of the arrangements of paragraph 1; tuna s classified under HS Chapter 3 f which the duties are suspended in accdance with general arrangements of the Generalized System of Preferences of ; s f which the tariff preferences are removed as a result of graduation, a tempary withdrawal of safeguard clauses in accdance with general arrangements of the Generalized System of Preferences of. 2. At the request of an EAC Partner State, without prejudice to the provisions of Article 2 and provided that the conditions of Paragraphs 2.1, 2.2 and 5 are met, materials iginating in countries and territies which benefit from agreements arrangements that provide f duty-free quota-free access to the market of the European Union shall be considered as materials iginating in an EAC Partner State. The request shall be submitted by Partner State to which shall grant the request in accdance with its internal procedures. The cumulation will remain in place as long as the afementioned conditions are fulfilled. It shall not be necessary that such materials have undergone sufficient wking processing, provided they have undergone wking processing going beyond that referred to in Article 9(1) The igin of the the countries territies concerned shall be determined accding to the rules of igin applicable in the framewk of 's preferential agreements arrangements with those countries and territies and in accdance with Article F the purpose of the implementation of this specific exclusion, non preferential rules of igin applicable at bder should apply. EN 14 EN

16 2.2. The cumulation provided f in this paragraph shall not apply to materials: (a) (b) (c) (d) falling within Harmonised System Chapters 1 to 24 and s listed in the Annex 1 - paragraph 1.(ii) of the Agreement on Agriculture belonging to the GATT Agreement of 1994; which at imptation to are subject to antidumping countervailing duties when iginating from the country which is subject to these antidumping countervailing duties 7 ; classified in tariff subs of the Harmonized system which include also other tariff lines at 8 digits which are not free of customs duties by means of application of agreements arrangements referred to in paragraph 2; which under any concluded free trade agreement between and a third country are subject to trade remedies and safeguards any other measure that deny such s duty free quota free market access into. 3. The EU shall notify yearly to the Committee the list of materials and countries to which paragraphs 1 and 2 shall apply. The EAC Partner States shall notify the European Commission, on a quarterly basis, the materials to which cumulation under paragraphs 1 and 2 has been applied Movement certificates EUR 1 igin declarations issued by application of paragraph 1 and 2 shall bear the following entry (in Box/Field 7): 'Application of Article of Protocol 1 to -EAC EPA'. 5. The cumulation provided f in paragraph 1 and 2 of this Article may only be applied provided that: (a) (b) all the countries and territies involved in the acquisition of the have entered into an arrangement agreement on administrative cooperation with each other using the template in Annex X, which ensures a crect implementation of this Article and includes a reference to the use of appropriate proofs of igin; Partner State States will provide, through the European Commission, with details of arrangements agreements on administrative cooperation with the other countries territies referred to in this Article. The European Commission shall publish in the Official Journal of the European Union (C series) the date on which the cumulation provided f in this Article may be applied with those countries and territies listed in this Article which have fulfilled the necessary requirements. 7 8 F the purpose of the implementation of this specific exclusion, non preferential rules of igin applicable at bder should apply. The European Commission will provide f a fm to be used by ACP States f the purposes of the notification. The fm will at least cover the following elements: the description of f cumulation and the igin of materials. EN 15 EN

17 ARTICLE 7 Wholly obtained s 1. The following shall be considered as wholly obtained in an EAC Partner State in the EU: (a) (b) (c) (d) (e) mineral s extracted from their soil from their seabed; plants and vegetable s grown, harvested gathered there; live animals bn and raised there; s from live animals raised there; s from slaughtered animals bn and raised there; (f) (i) s obtained by hunting fishing conducted there; (ii) s of aquaculture, including mariculture, where the fish are bn and raised there; (g) (h) (i) s of sea fishing and other s taken from the sea outside any territial sea of partners states of by their vessels s made aboard their facty ships exclusively from s referred to in (f); used articles collected there provided that such goods are fit only f the recovery of raw materials; (j) waste and scrap resulting from manufacturing operations conducted there; (k) (l) s extracted from marine soil subsoil outside their territial waters provided that they have sole rights to wk that soil subsoil; goods produced there exclusively from s specified in (a) to (j). 2. The terms "their vessels" and "their facty ships" in paragraph 1(g) and (h) shall apply only to vessels and facty ships: (a) (b) (c) which are registered in an EU Member State, in an EAC Partner State in an OCT; which sail under the flag of an EU Member State, of an EAC Partner State of an OCT; which meet one of the following conditions: (i) they are at least 50 percent owned by nationals of an EU Member State, of an EAC Partner State of an OCT; EN 16 EN

18 (ii) they are owned by companies which have their office and their main place of business in an EU Member State, in an EAC Partner State in an OCT; and which are at least 50 percent owned by an EU Member State, by an EAC Partner State by an OCT, public entities nationals of that State. 3. twithstanding the provisions of paragraph 2, shall recognise, upon request of an EAC Partner State, that vessels chartered leased by Partner State be treated as "their vessels" to undertake fisheries activities under the following conditions: (a) (b) (c) (d) (e) (f) they operate under the flag of Partner State; and Partner State offered the opptunity to negotiate a fishery agreement and did not accept this offer; and at least 50% of crew, master and officers included are nationals of States party to the Agreement, of an OCT; and the fish is landed and processed in Partner State; and the activities undertaken under this paragraph target a surplus identified by means of scientific advice made available in the context of the IOTC by relevant international, regional national authities; and the charter lease contract has been accepted by the Committee as providing adequate opptunities f developing the capacity of Partner State to fish in its own account and in particular as conferring on Partner State the responsibility f the nautical and commercial management of the vessel placed at its disposal f a significant period of time. 4. The conditions of paragraph 2 may each be fulfilled in, in different EAC Partner States, in the OCTs States belonging to other EPAs insofar as the countries involved benefit from cumulation in accdance with Articles 4 and 5. In this case, s shall be deemed to have the igin of the country under which flag the vessel facty ship sails in accdance with paragraph 2(b). These conditions shall only apply with regard to the OCTs and States belonging to other EPAs provided that the provisions of Article 4(3) have been fulfilled. ARTICLE 8 Sufficiently wked processed s 1. F the purposes of Article 2, s which are not wholly obtained are considered to be sufficiently wked processed, when the conditions set out in Annex II are fulfilled. EN 17 EN

19 2. The conditions referred to in paragraph 1 above indicate, f all s covered by this Agreement, the wking processing which must be carried out on non-iginating in manufacturing and apply only in relation to such materials. Accdingly, it follows that if a, which has acquired by fulfilling the conditions set out in Annex II is used in the manufacture of another, the conditions applicable to in which it is incpated do not apply to it, and no account shall be taken of the non-iginating materials which may have been used in its manufacture. 3. twithstanding paragraphs 1 and 2, non-iginating materials which, accding to the conditions set out in Annex II should not be used in the manufacture of a given may nevertheless be used, provided that their total value net weight assessed f the : (a) 15 % of the weight of f s falling within Chapters 2 and 4 to 24 of the Harmonized System, other than processed fishery s of Chapter 16; (b) 15 % of the ex-wks f other s, except f s falling within Chapters 50 to 63 of the Harmonized System, f which the tolerances mentioned in tes 6 and 7 of Part I of Annex II, shall apply. 4. Paragraph 3 shall not allow exceeding any of the percentages f the maximum content of non-iginating materials as specified in the rules laid down in the list in Annex II. 5. Paragraphs 3 and 4 shall not apply to s wholly obtained within the meaning of Article 7. However, without prejudice to Article 9 and 10(1), the tolerance provided f in those paragraphs shall nevertheless apply to the sum materials which are used in the manufacture of a and f which the rule laid down in the list in Annex II f that requires that such materials be wholly obtained. ARTICLE 9 Insufficient wking processing 1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient wking processing to confer the status of iginating s, whether not the requirements of Article 8 are satisfied: (a) (b) (c) (d) (e) (f) preserving operations to ensure that s remain in good condition during transpt and stage; breaking-up and assembly of packages; washing, cleaning; removal of dust, oxide, oil, paint other coverings; ironing pressing of textiles; simple painting and polishing operations; husking, partial total milling of rice, polishing, and glazing of cereals and rice; EN 18 EN

20 (g) (h) (i) (j) (k) (l) operations to colour and flavour sugar fm sugar lumps; partial total milling of crystal sugar; peeling, stoning and shelling, of fruits, nuts and vegetables; sharpening, simple grinding simple cutting; sifting, screening, sting, classifying, grading, matching; (including the making-up of sets of articles); simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards boards and all other simple packaging operations; affixing printing marks, labels, logos and other like distinguishing signs on s their packaging; (m) simple mixing of s, whether not of different kinds; mixing of sugar with any material; (n) simple addition of water dilution dehydration denaturation of s; (o) (p) (q) simple assembly of parts of articles to constitute a complete article disassembly of s into parts; a combination of two me operations specified in (a) to (n); slaughter of animals. 2. All operations carried out either in the European Union in Partner States on a given shall be considered together when determining whether the wking processing undergone by that is to be regarded as insufficient within the meaning of paragraph 1. ARTICLE 10 Unit of qualification 1. The unit of qualification f the application of the provisions of this Protocol shall be the particular which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System. Accdingly, it follows that: (a) (b) when a composed of a group assembly of articles is classified under the terms of the Harmonized System in a single, the whole constitutes the unit of qualification; when a consignment consists of a number of identical s classified under the same of the Harmonized System, each must be taken individually when applying the provisions of this Protocol. EN 19 EN

21 2. Where, under General Rule 5 f the interpretation of the Harmonized System, packaging is included with f classification purposes, it shall be included f the purposes of determining igin. ARTICLE 11 Accessies, spare parts and tools Accessies, spare parts and tools dispatched with a piece of equipment, machine, apparatus vehicle, which are part of the nmal equipment and included in the price thereof which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus vehicle in question. ARTICLE 12 Sets Sets, as defined in General Rule 3 f the interpretation of the Harmonized System, shall be regarded as iginating when all component s are iginating. Nevertheless, when a set is composed of iginating and non-iginating s, the set as a whole shall be regarded as iginating, provided that the value of the non-iginating s 15 per cent of the ex-wks the set. ARTICLE 13 Neutral elements In der to determine whether a is iginating, it shall not be necessary to determine the igin of the following which might be used in its manufacture: (a) (b) (c) (d) energy and fuel; plant and equipment; machines and tools; goods which do not enter and which are not intended to enter into the final composition of. TITLE III TERRITORIAL REQUIREMENTS ARTICLE 14 Principle of territiality EN 20 EN

22 1. Except as provided f in Articles 3, 4, 5 and 6, the conditions f acquiring iginating status set out in Title II must be fulfilled without interruption in Partner States in. 2. Except as provided f in Articles 3, 4, 5 and 6, where iginating goods expted from an EAC Partner State from to another country return, they must be considered as non-iginating, unless it can be demonstrated to the satisfaction of the customs authities that: (a) (b) the returning goods are the same goods as those expted; and they have not undergone any operation beyond that necessary to preserve them in good condition while in that country while being expted. ARTICLE 15 n alteration 1. The s declared f home use in a Party shall be the same s as expted from the other Party in which they are considered to iginate. They shall not have been altered, transfmed in any way subjected to operations other than to preserve them in good condition other than adding affixing marks, labels, seals any documentation to ensure compliance with specific domestic requirements of the impting Party, pri to being declared f home use. 2. Stage of s consignments may take place provided they remain under customs supervision in the country(ies) of transit. 3. Without prejudice to the provisions of Title IV, the splitting of consignments may take place where carried out by the expter under his responsibility, provided they remain under customs supervision in the country(ies) of splitting. 4. Compliance with paragraphs 1 to 3 shall be considered as satisfied unless the customs authities have reason to believe the contrary. In such cases, the customs authities may request the declarant to provide evidence of compliance, which may be given by any means, including contractual transpt documents such as bills of lading factual concrete evidence based on marking numbering of packages any evidence related to the goods themselves. ARTICLE 16 Exhibitions 1. Originating s, sent f exhibition in a country territy other than those referred to in Articles 4, 5 and 6 with which cumulation is applicable and sold after the exhibition f imptation in in an EAC Partner State shall benefit on imptation from the EN 21 EN

23 provisions of this Agreement provided it is shown to the satisfaction of the customs authities that: (a) (b) (c) (d) an expter has consigned these s from an EAC Partner State from to the country in which the exhibition is held and has exhibited them there; s have been sold otherwise disposed of by that expter to a person in an EAC Partner State in ; s have been consigned during the exhibition immediately thereafter in the state in which they were sent f exhibition; and s have not, since they were consigned f exhibition, been used f any purpose other than demonstration at the exhibition. 2. A proof of igin must be issued made out in accdance with the provisions of Title IV and submitted to the customs authities of the impting country in the nmal 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 crafts exhibition, fair similar public show display which is not ganised f private purposes in shops business premises with a view to the sale of feign s, and during which the s remain under customs control. TITLE IV PROOF OF ORIGIN ARTICLE 17 General requirements 1. Products iginating in an EAC Partner State, on imptation into and s iginating in, on imptation into an EAC Partner State shall benefit from the provisions of this Agreement upon submission of either: (a) (b) a movement certificate EUR 1, a specimen of which appears in Annex III; in the cases specified in Article 22 (1), a declaration, subsequently referred to as the "igin declaration", given by the expter on an invoice, a delivery note any other commercial document which describes s concerned in sufficient detail to enable them to be identified. The text of the igin declaration appears in Annex IV. 2. Upon notification in the Committee from to Partner States, s iginating in shall on imptation into an EAC Partner State benefit from, preferential tariff treatment of this Agreement upon submission of an igin declaration made out as provided f in Article 22 by an expter registered in accdance with the EN 22 EN

24 relevant legislation of. Such notification may stipulate that paragraph 2, (a) and (b) shall cease to apply to. 3. twithstanding paragraph 1, iginating s within the meaning of this Protocol shall, in the cases specified in Article 27, benefit from this Agreement without it being necessary to submit any of the documents referred to above. 4. F the purpose of applying the provisions of this Title, the expters shall endeavour to use a language common to both Partner States and. ARTICLE 18 Procedure f the issue of a movement certificate EUR 1 1. A movement certificate EUR 1 shall be issued by the customs authities of the expting country on application having been made in writing by the expter, under the expter's responsibility, by his authised representative. 2. F this purpose, the expter his authised representative shall fill out both the movement certificate EUR 1 and the application fm, specimens of which appear in Annex III. These fms shall be completed in accdance with the provisions of this Protocol. If they are handwritten, they shall be completed in ink in printed characters. The description of s must be given in the box reserved f this purpose without leaving any blank lines. Where the box is not completely filled, a hizontal line must be drawn below the last line of the description, the empty space being crossed through. 3. The expter applying f the issue of a movement certificate EUR 1 shall be prepared to submit at any time, at the request of the customs authities of the expting country where the movement certificate EUR 1 is issued, all appropriate documents proving the of s concerned as well as the fulfilment of the other requirements of this Protocol. 4. A movement certificate EUR 1 shall be issued by the customs authities of an EU Member State of an EAC Partner State if s concerned can be considered as s iginating in in an EAC Partner State in one of the other countries territies referred to in Articles 4 and 5 and fulfil the other requirements of this Protocol. 5. The issuing customs authities shall take any steps necessary to verify the iginating status of s and the fulfilment of the other requirements of this Protocol. F this purpose, they shall have the right to call f any evidence and to carry out any inspection of the expter's accounts any other check considered appropriate. The issuing customs authities shall also ensure that the fms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved f the description of s has been completed in such a manner as to exclude all possibility of fraudulent additions. 6. The date of issue of the movement certificate EUR 1 shall be indicated in Box 11 of the certificate. EN 23 EN

25 7. A movement certificate EUR 1 shall be issued by the customs authities and made available to the expter as soon as actual exptation has been effected ensured. ARTICLE 19 Movement certificates EUR 1 issued retrospectively 1. twithstanding Article 18(7), a movement certificate EUR 1 may exceptionally be issued after exptation of s to which it relates if: (a) (b) it was not issued at the time of exptation because of errs involuntary omissions special circumstances; it is demonstrated to the satisfaction of the customs authities that a movement certificate EUR 1 was issued but was not accepted at imptation f technical reasons. 2. F the implementation of paragraph 1, the expter must indicate in his application the place and date of exptation of s to which the movement certificate EUR 1 relates, and state the reasons f his request. 3. The customs authities may issue a movement certificate EUR 1 retrospectively only after verifying that the infmation supplied in the expter's application agrees with that in the cresponding file. 4. Movement certificates EUR 1 issued retrospectively must be endsed with the following phrase in English: "ISSUED RETROSPECTIVELY" 5. The endsement referred to in paragraph 4 shall be inserted in the "Remarks" box of the movement certificate EUR 1. ARTICLE 20 Issue of a duplicate movement certificate EUR 1 1. In the event of theft, loss destruction of a movement certificate EUR 1, the expter may apply to the customs authities which issued it f a duplicate made out on the basis of the expt documents in their possession. 2. The duplicate issued in this way must be endsed with the following wd in English: "DUPLICATE" 3. The endsement referred to in paragraph 2 shall be inserted in the "Remarks" box of the duplicate movement certificate EUR 1. EN 24 EN

26 4. The duplicate, which must bear the date of issue of the iginal movement certificate EUR 1, shall take effect as from that date. ARTICLE 21 Issue of movement certificates EUR 1 on the basis of a proof of igin issued made out previously When iginating s are placed under the control of a customs office in an EAC Partner State in, it shall be possible to replace the iginal proof of igin by one me movement certificates EUR 1 f the purpose of sending all some of these s elsewhere within the EAC Partner States within. The replacement movement certificate(s) EUR 1 shall be issued by the customs office under whose control s are placed and endsed by the customs authity under whose control s are placed. ARTICLE 22 Conditions f making out an igin declaration 1. An igin declaration as referred to in Article 17(1)(b) may be made out: (a) (b) by an approved expter within the meaning of Article 23, by any expter f any consignment consisting of one me packages containing iginating s whose total value EUR An igin declaration may be made out if s concerned can be considered as s iginating in an EAC Partner State in in one of the other countries territies referred to in Articles 4 and 5 and fulfil the other requirements of this Protocol. 3. The expter making out an igin declaration shall be prepared to submit at any time, at the request of the customs authities of the expting country, all appropriate documents proving the of s concerned as well as the fulfilment of the other requirements of this Protocol. 4. An igin declaration shall be made out by the expter by typing, stamping printing on the invoice, the delivery note another commercial document, the declaration, the text of which appears in Annex IV to this Protocol, using one of the linguistic versions set out in that Annex and in accdance with the provisions of the domestic law of the expting country. If the declaration is handwritten, it shall be written in ink in printed characters. 5. Origin declarations shall bear the iginal signature of the expter in manuscript. However, an approved expter within the meaning of Article 23 shall not be required to sign such declarations provided that he gives the customs authities of the expting country a written undertaking that he accepts full responsibility f any igin declaration which identifies him as if it had been signed in manuscript by him. EN 25 EN

27 6. An igin declaration may be made out by the expter when s to which it relates are expted, after exptation on condition that it is presented in the impting country no longer than two years after the imptation of s to which it relates. ARTICLE 23 Approved expter 1. The customs authities of the expting country may authise any expter who makes frequent shipments of s under the trade cooperation provisions of this Agreement to make out igin declarations irrespective of the value of s concerned. An expter seeking such authisation must offer to the satisfaction of the customs authities all guarantees necessary to verify the of s as well as the fulfilment of the other requirements of this Protocol. 2. The customs authities may grant the status of approved expter subject to any conditions which they consider appropriate. 3. The customs authities shall grant to the approved expter a customs authisation number which shall appear on the igin declaration. 4. The customs authities shall monit the use of the authisation by the approved expter. 5. The customs authities may withdraw the authisation at any time. They shall do so where the approved expter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 otherwise makes an increct use of the authization. ARTICLE 24 Validity of proof of igin 1. A proof of igin shall be valid f ten (10) months from the date of issue in the expting country, and must be submitted within the said period to the customs authities of the impting country. 2. Proofs of igin which are submitted to the customs authities of the impting country after the final date f presentation specified in paragraph 1 may be accepted f 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 authities of the impting country may accept the proofs of igin where s have been submitted befe the said final date. EN 26 EN

28 ARTICLE 25 Submission of proof of igin Proofs of igin shall be submitted to the customs authities of the impting country in accdance with the procedures applicable in that country. The said authities may require a translation of a proof of igin and may also require the impt declaration to be accompanied by a statement from the impter to the effect that s meet the conditions required f the implementation of this Agreement. ARTICLE 26 Imptation by instalments Where, at the request of the impter and on the conditions laid down by the customs authities of the impting country, dismantled non-assembled s within the meaning of General Rule 2(a) f the interpretation of the Harmonized System falling within Sections XVI and XVII 7308 and 9406 of the Harmonized System are impted by instalments, a single proof of igin f such s shall be submitted to the customs authities upon imptation of the first instalment. ARTICLE 27 Exemptions from proof of igin 1. Products sent as small packages from private persons to private persons fming part of travellers' personal luggage shall be admitted as iginating s without requiring the submission of a proof of igin, provided that such s are not impted 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 s sent by post, this declaration can be made on customs declaration CN22/CN23 on a sheet of paper annexed to that document. 2. Impts which are occasional and consist solely of s f the personal use of the recipients travellers their families shall not be considered as impts by way of trade if it is evident from the nature and quantity of s that no commercial purpose is in view. 3. Furtherme, the total value of these s shall not exceed EUR 500 in the case of small packages EUR in the case of s fming part of travellers' personal luggage. ARTICLE 28 Infmation procedure f cumulation purposes EN 27 EN