AS WELL AS KOSOVO (UNDER RESOLUTION 1244(1999) OF THE UNITED NATIONS SECURITY COUNCIL),
hereinafter referred to as „the participants in the European Union's Stabilisation and Association Process”,
THE KINGDOM OF DENMARK IN RESPECT OF THE FAROE ISLANDS,
hereinafter referred to as „the Faroe Islands”,
hereinafter referred to together as the „Contracting Parties”,
CONSIDERING the pan-Euro-Mediterranean system of cumulation of origin, which is made up of a network of Free Trade Agreements and provides for identical rules of origin allowing for diagonal cumulation,
CONSIDERING the possible future extension of the geographical scope of diagonal cumulation to neighbouring countries and territories,
CONSIDERING the difficulties in the management of the current network of bilateral protocols on rules of origin among the countries or territories of the pan-Euro-Mediterranean zone, it is desirable to transpose the existing bilateral systems on rules of origin into a multilateral framework, without prejudice to the principles laid down in the relevant agreements or any other related bilateral agreements,
CONSIDERING that any amendment to a protocol on rules of origin applicable between two partner countries of the pan-Euro-Mediterranean zone implies identical amendments to each and every protocol applicable within the zone,
CONSIDERING that the rules of origin will need to be amended in order to better respond to the economic reality,
CONSIDERING the idea to base cumulation of origin on a single legal instrument in the form of a regional convention on preferential rules of origin, to which the individual free trade agreements applicable between the countries of the zone would refer,
CONSIDERING that the following regional Convention does not lead overall to a less favourable situation than in the previous relation between the free trade partners which apply the pan-euro or pan-euro-med cumulation,
CONSIDERING that the idea of a regional convention on preferential rules of origin for the pan Euro-Mediterranean zone received the support of the Euro-Med Trade Ministers during their meeting in Lisbon on 21 October 2007,
CONSIDERING that a main objective of a single regional convention is to move towards the application of identical rules of origin for the purpose of cumulation of origin for goods traded between all Contracting Parties,
HAVE DECIDED to conclude the following Convention:
1. This Convention lays down provisions on the origin of goods traded under the relevant Agreements concluded between the Contracting Parties.
2. The concept of „originating products” and the methods of administrative cooperation relating thereto are set out in the Appendixes to this Convention.
Appendix I sets out general rules for the definition of the concept of originating products and the methods of administrative cooperation.
Appendix II sets out special provisions applicable between certain Contracting Parties and derogating from the provisions laid down in Appendix I.
3. The following are Contracting Parties to this Convention:
- the European Union,
- the EFTA States as listed in the Preamble,
- the Kingdom of Denmark in respect of the Faroe Islands,
- the participants in the Barcelona Process as listed in the Preamble,
- the participants in the European Unionʼs Stabilisation and Association Process as listed in the Preamble.
With respect to the European Union, this Convention shall apply to the territory in which the Treaty on European Union is applicable, as defined in article 52 of that Treaty and Article 355 of the Treaty of the Functioning of the European Union.
For the purposes of this Convention:
(1) „Contracting Party” means those listed in Article 1(3);
(2) „third party” means any neighbouring country or territory which is not a Contracting Party,
1. A Joint Committee is hereby established in which each Contracting Party shall be represented.
2. The Joint Committee shall act by unanimity, without prejudice to Article 5(4).
3. The Joint Committee shall meet whenever necessary, but at least once a year. Any Contracting Party may request that a meeting be held.
4. The Joint Committee shall adopt its own rules of procedure, which shall, inter alia, contain provisions for convening meetings and for the designation of the chairperson and his term of office.
5. The Joint Committee may decide to set up any sub-committee or working group that can assist it in carrying out its duties.
1. It shall be the responsibility of the Joint Committee to administer this Convention and ensure its proper implementation. For this purpose, it shall be regularly informed by the Contracting Parties about the experiences they have in the application of this Convention. The Joint Committee shall make recommendations, and in the cases provided for in paragraph 3, shall take decisions.
2. In particular the Joint Committee shall recommend to the Contracting Parties:
(a) explanatory notes and guidelines for the uniform application of this Convention;
(b) any other measures required for its application.
3. The Joint Committee shall adopt by decision:
(a) amendments to this Convention including amendments to the Appendixes;
(b) invitations to third parties to accede to this Convention in accordance with Article 5;
(c) transitional measures required in the case of the accession of new Contracting Parties.
Decisions referred to in this paragraph shall be put into effect by the Contracting Parties in accordance with their own legislation.
4. If a representative of a Contracting Party in the Joint Committee has accepted a decision subject to the fulfilment of fundamental legal requirements, the decision shall enter into force, if no date is contained therein, on the first day of the second month after the lifting of the reservation is notified.
ACCESSION OF THIRD PARTIES
1. A third party may become a Contracting Party to this Convention, provided that the candidate country or territory has a free trade agreement in force, providing for preferential rules of origin, with at least one of the Contracting Parties.
2. A third party shall submit a written request for accession to the depositary.
3. The depositary shall submit the request to the Joint Committee for its consideration.
4. The decision of the Joint Committee inviting a third party to accede to this Convention shall be sent to the depositary, which shall, within two months, forward it, together with a text of the Convention in force on that date, to the requesting third party. One single Contracting Party may not oppose that decision.
5. A third party invited to become a Contracting Party to this Convention shall do so by depositing an instrument of accession with the depositary. The said instruments shall be accompanied by a translation of the Convention into the official language(s) of the acceding third party.
6. The accession shall become effective on the first day of the second month following the depositing of the instrument of accession.
7. The depositary shall notify all Contracting Parties of the date on which the instrument of accession was deposited and the date on which the accession will become effective.
8. Recommendations and decisions of the Joint Committee referred to in Article 4(2) and (3) adopted between the date of submission of the request referred to in paragraph 2 of this Article and the date on which accession becomes effective shall also be communicated to the acceding third party via the depositary.
A declaration accepting such acts shall be inserted either in the instrument of accession or in a separate instrument deposited with the depositary within six months of the communication. If the declaration is not deposited within that period, the accession shall be considered void.
9. From the date referred to in paragraph 4, the third party concerned may be represented with observer status in the Joint Committee and any sub-committee and working groups.
Each Contracting Party shall take appropriate measures to ensure that this Convention is effectively applied, taking account of the need to achieve mutually satisfactory solutions of any difficulties arising from its application.
The Contracting Parties shall keep each other informed via the depositary of the measures which they adopt for the implementation of this Convention.
The Appendixes to this Convention shall form an integral part thereof.
Any Contracting Party may withdraw from this Convention provided it gives 12 monthsʼ notice in writing to the depositary, which shall notify all other Contracting Parties.
1. This Convention shall enter into force on 1 January 2011, in relation to those Contracting Parties which, by then, have deposited their instrument of acceptance with the depositary, provided that at least two Contracting Parties have deposited their instruments of acceptance with the depositary by 31.12.2010.
2. If this Convention does not enter into force on 1 January 2011, it shall enter into force on the first day of the second month following the deposit of the last instrument of acceptance by at least two Contracting Parties.
3. In relation to any other Contracting Party than those referred to in paragraphs 1 and 2, this Convention shall enter into force on the first day of the second month following the deposit of its instrument of acceptance.
4. The depositary shall notify to the Contracting Parties the date of the deposit of the instrument of acceptance of each Contracting Party and the date of the entry into force of this Convention by publishing this information in the Official Journal of the European Union (C series).
The General Secretariat of the Council of the European Union shall act as depositary of this Convention.
Annex I: Introductory notes to the list in Annex II
Annex II: List of working or processing required to be carried out on non-originating materials in order for the product manufactured to obtain originating status
Annex III a: Specimens of movement certificate EUR.1 and application for a movement certificate EUR.1
Annex III b: Specimens of movement certificate EUR-MED and application for a movement certificate EUR-MED
Annex IV a: Text of the origin declaration
Annex IV b: Text of the origin declaration EUR-MED
Annex V: List of Contracting Parties which do not apply provisions on partial drawback as provided for in article 14(7) of this Appendix
For the purposes of this Convention:
(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 a product;
(c) „product” means a 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 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
(f) „ex-works price” means the price paid for the product ex works to the manufacturer in the Contracting Party 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 exporting Contracting Party;
(h) „value of originating materials” means the value of such materials as defined in (g) applied mutatis mutandis;
(i) „value added” means the ex-works price minus the customs value of each of the materials incorporated which originate in the other Contracting Parties with which cumulation is applicable or, where the customs value is not known or cannot be ascertained, the first ascertainable price paid for the materials in the exporting Contracting Party;
(j) „chapters” and "headings" mean the chapters and the headings (four digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Convention as "the Harmonised System" or "HS";
(k) „classified” refers to the classification of a product or material under a particular heading;
(l) „consignment” means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
(m) „territories” includes territorial waters;
(n) „customs authorities of the Contracting Party” for the European Union means any of the customs authorities of the Member States of the European Union.
DEFINITION OF THE CONCEPT
OF „ORIGINATING PRODUCTS”
1. For the purpose of implementing the relevant Agreement, the following products shall be considered as originating in a Contracting Party when exported to another Contracting Party:
(a) products wholly obtained in the Contracting Party, within the meaning of Article 4;
(b) products obtained in the Contracting Party incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in that Contracting Party within the meaning of Article 5;
(c) goods originating in the European Economic Area (EEA) within the meaning of Protocol 4 to the Agreement on the European Economic Area. Such goods shall be considered as originating in the European Union, Iceland, Liechtenstein1 or Norway („EEA Parties”) when exported respectively from the European Union, Iceland, Liechtenstein or Norway to a Contracting Party other than the EEA Parties.
2. The provisions of paragraph 1(c) shall apply only provided that free trade agreements are applicable between the importing Contracting Party and the EEA Parties.
Cumulation of origin
1. Without prejudice to the provisions of Article 2(1), products shall be considered as originating in the exporting Contracting Party when exported to another Contracting Party if they are obtained there, incorporating materials originating in Switzerland (including Liechtenstein)2, Iceland, Norway, Turkey or in the European Union, provided that the working or processing carried out in the exporting Contracting Party goes beyond the operations referred to in Article 6. It shall not be necessary for such materials to have undergone sufficient working or processing.
2. Without prejudice to the provisions of Article 2(1), products shall be considered as originating in the exporting Contracting Party when exported to another Contracting Party if theyare obtained there, incorporating materials originating in the Faroe Islands, any participant in the Barcelona Process other than Turkey, or any Contracting Party other than those referred to in paragraph 1 of this Article, provided that the working or processing carried out in the exporting Contracting Party goes beyond the operations referred to in Article 6. It shall not be necessary for such materials to have undergone sufficient working or processing.
3. Where the working or processing carried out in the exporting Contracting Party does not go beyond the operations referred to in Article 6, the product obtained shall be considered as originating in the exporting Contracting Party only where the value added there is greater than the value of the materials used originating in any one of the other Contracting Parties referred to in paragraphs 1 and 2. If this is not so, the product obtained shall be considered as originating in the Contracting Party which accounts for the highest value of originating materials used in the manufacture in the exporting Contracting Party.
4. Products originating in the Contracting Parties referred to in paragraphs 1 and 2 which do not undergo any working or processing in the exporting Contracting Party shall retain their origin if exported into one of the other Contracting Parties.
5. The cumulation provided for in this Article may be applied only provided that:
(a) a preferential trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade is applicable between the Contracting Parties involved in the acquisition of the originating status and the Contracting Party of destination;
(b) materials and products have acquired originating status by the application of rules of origin identical to those given in this Convention; and
(c) notices indicating the fulfilment of the necessary requirements to apply cumulation have been published in the Official Journal of the European Union (C series) and in the Contracting Parties which are party to the relevant Agreements, according to their own procedures.
The cumulation provided for in this Article shall apply from the date indicated in the notice published in the Official Journal of the European Union (C series).
The Contracting Parties shall provide the other Contracting Parties which are party to the relevant Agreements, through the European Commission, with details of the Agreements, including their dates of entry into force, which are applied with the other Contracting Parties referred to in paragraphs 1 and 2.
Wholly obtained products
1. The following shall be considered as wholly obtained in a Contracting Party when exported to another Contracting Party:
(a) mineral products extracted from its soil or from its 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 exporting Contracting Party by its vessels;
(g) products made aboard its factory ships exclusively from products referred to in (f);
(i) waste and scrap resulting from manufacturing operations conducted there;
(j) products extracted from marine soil or subsoil outside its territorial waters provided that it has sole rights to work that soil or subsoil;
(k) goods produced there exclusively from the products specified in (a) to (j).
2. The terms „its vessels” and „its factory ships” in paragraph 1(f) and (g) shall apply only to vessels and factory ships:
(a) which are registered or recorded in the exporting Contracting Party;
(b) which sail under the flag of the exporting Contracting Party;
(c) which are owned to an extent of at least 50 % by nationals of the exporting Contracting Party, or by a company with its head office in the exporting Contracting Party, 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 the exporting Contracting Party and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to the exporting Contracting Party or to public bodies or nationals of the said Contracting Party;
(d) of which the master and officers are nationals of the exporting Contracting Party; and
(e) of which at least 75 % of the crew are nationals of the exporting Contracting Party.
3. For the purpose of paragraph 2 (a) and (b), when the exporting Contracting Party is the European Union, it means a Member State of the European Union.