CHAPTER I SUBJECT MATTER, SCOPE AND MARKET ACCESS

Article 1 Subject matter

This Regulation applies the arrangements for products originating in certain states which are part of the African, Caribbean and Pacific (ACP) Group of States provided for in agreements establishing, or leading to the establishment of, economic partnership agreements.

Article 2 Scope

1.This Regulation applies to products originating in the regions and states listed in Annex I.

2.The Commission is empowered to adopt delegated acts in accordance with Article 22 to amend Annex I in order to add regions or states from the ACP Group of States which have concluded negotiations on an agreement with the Union which at least meets the requirements of Article XXIV of the General Agreement of Tariffs and Trade 1994 (GATT 1994).

3.A region or state shall remain on the list in Annex I unless the Commission adopts a delegated act in accordance with Article 22 amending Annex I to remove that region or state from that Annex, in particular where:

(a)the region or state indicates that it intends not to ratify an agreement which has permitted it to be included in Annex I;

(b)ratification of an agreement which has permitted a region or state to be included in Annex I has not taken place within a reasonable period of time such that the entry into force of the agreement is unduly delayed; or

(c)the agreement is terminated, or the region or state concerned terminates its rights and obligations under the agreement, but the agreement otherwise remains in force.

Article 3 Delegation of power

The Commission is empowered to adopt delegated acts in accordance with Article 22 to amend Annex I to this Regulation by reinstating those regions or states from the ACP Group of States which were removed from Annex I to Regulation (EC) No 1528/2007 by Regulation (EU) No 527/2013 and which have, since such removal, taken the necessary steps towards ratification of their respective agreements.

Article 4 Market access

1.Import duties shall be eliminated on all products of Chapters 1 to 97, with the exception of Chapter 93, of the Harmonised System originating in a region or state listed in Annex I. Such elimination shall be subject to the general safeguard mechanism provided for in Articles 9 to 20.

2.For products of Chapter 93 of the Harmonised System originating in regions or states listed in Annex I, the most-favoured-nation duties applied shall continue to apply.

3.Paragraph 1 shall not apply to products originating in South Africa. Such products shall be subject to the relevant provisions of the TDCA. The Commission is empowered to adopt delegated acts in accordance with Article 22 to add an Annex to this Regulation setting out the regime applicable to products originating in South Africa once the relevant trade provisions of the TDCA have been superseded by the relevant provisions of an agreement establishing, or leading to the establishment of, an EPA.

4.Paragraph 1 shall not apply to products under tariff heading 0803 00 19 originating in a region or state listed in Annex I and released for free circulation in the outermost regions of the Union until 1 January 2018. Paragraph 1 of this Article and Article 8 shall not apply to products under tariff heading 1701 originating in a region or state listed in Annex I and released for free circulation in the French overseas departments until 1 January 2018. Those periods shall be extended to 1 January 2028 unless otherwise agreed between the Parties to the relevant agreements. The Commission shall publish a notice in the Official Journal of the European Union informing interested parties of the expiry of this provision.

CHAPTER II RULES OF ORIGIN AND ADMINISTRATIVE COOPERATION

Article 5 Rules of origin

1.The rules of origin set out in Annex II shall apply in determining whether products originate in the regions or states listed in Annex I.

2.The rules of origin set out in Annex II shall be superseded by those annexed to any agreement with the regions or states listed in Annex I when that agreement is either provisionally applied, or enters into force, whichever is the earlier. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date of provisional application or entry into force, from which the rules of origin in the agreement are to apply to products originating in the regions and states listed in Annex I.

3.The Commission is empowered to adopt delegated acts in accordance with Article 22 concerning technical amendments to Annex II where required to take account of amendments to other Union customs legislation.

4.Decisions on the management of Annex II shall be adopted in accordance with the examination procedure referred to in Article 19(5).

Article 6 Administrative cooperation

1. Where the Commission has made a finding, on the basis of objective information, of a failure to provide administrative cooperation or of irregularities or fraud, it may temporarily suspend the elimination of duties provided for in Articles 4, 7 and 8 (‘the relevant treatment’) in accordance with this Article.

2.For the purpose of this Article, a failure to provide administrative cooperation means, inter alia:

(a)a repeated failure to respect relevant obligations requiring the verification of the originating status of the product or products concerned;

(b)a repeated refusal or undue delay in carrying out or communicating the results of subsequent verification of the proof of origin;

(c)a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relating to the granting of the relevant treatment.

For the purpose of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the region or state concerned.

3.Where the Commission, on the basis of information provided by a Member State or on its own initiative, finds that the conditions laid down in paragraphs 1 and 2 of this Article are met, the relevant treatment may be suspended in accordance with the advisory procedure referred to in Article 19(4), provided that the Commission has first:

(a)informed the Committee referred to in Article 19(2);

(b)notified the region or state concerned in accordance with any relevant procedures applicable between the Union and that state or region; and

(c)published a notice in the Official Journal of the European Union stating that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud.

4.The period of suspension under this Article shall be no longer than is necessary to protect the Union's financial interests. That period shall not exceed six months, but may be renewed. At the end of that period, the Commission shall decide either to terminate the suspension or to extend the period of suspension in accordance with the advisory procedure referred to in Article 19(4).

5.The temporary suspension procedures set out in paragraphs 2, 3 and 4 shall be superseded by those set out in any agreement with the regions or states listed in Annex I when that agreement is either provisionally applied or enters into force, whichever is the earlier. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date of provisional application or entry into force, from which the temporary suspension procedures in the agreement are to apply to products covered by this Regulation.

6.In order to implement the temporary suspension provided for in any agreement with the regions or states listed in Annex I, the Commission shall, without undue delay:

(a)inform the Committee referred to in Article 19(2) that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud; and

(b)publish the notice in the Official Journal of the European Union stating that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud.

The decision suspending the relevant treatment shall be adopted in accordance with the advisory procedure referred to in Article 19(4).

CHAPTER III TRANSITIONAL ARRANGEMENTS

SECTION 1 Rice

Article 7 Zero-duty tariff rate

No import duties shall be imposed on the products under tariff heading 1006.

SECTION 2 Sugar

Article 8 Zero-duty tariff rate

No import duties shall be imposed on products under tariff heading 1701.

CHAPTER IV GENERAL SAFEGUARD PROVISIONS

Article 9 Definitions

For the purposes of this Chapter, the following definitions apply:

Article 10 Principles

1.A safeguard measure may be imposed in accordance with the provisions set out in this Chapter where products originating in regions or states listed in Annex I are being imported into the Union in such increased quantities and under such conditions as to cause or threaten to cause any of the following:

(a)serious injury to Union industry;

(b)disturbances in a sector of the economy, particularly where those disturbances produce major social problems or difficulties which could bring about serious deterioration in the economic situation of the Union; or

(c)disturbances in the markets of agricultural products covered by Annex I to the WTO Agreement on Agriculture or mechanisms regulating those markets.

2.In cases where products originating in regions or states listed in Annex I are being imported into the Union in such increased quantities and under such conditions as to cause or threaten to cause disturbances in the economic situation of one or several of the outermost regions of the Union, a safeguard measure may be imposed in accordance with the provisions set out in this Chapter.

Article 11 Determination of the conditions to impose safeguard measures

1.The determination of serious injury or a threat thereof shall cover, inter alia, the following factors:

(a)the volume of imports, in particular where there has been a significant increase, either in absolute terms or relative to production or consumption in the Union;

(b)the price of imports, in particular where there has been a significant price undercutting in comparison with the price of a like product in the Union;

(c)the consequent impact on Union industry as indicated by trends in certain economic factors such as production, capacity utilisation, stocks, sales, market share, the depression of prices or prevention of price increases which would normally have occurred, profits, return on capital employed, cash flow and employment;

(d)factors other than trends in imports which are causing or may have caused injury to the Union industry concerned.

2.The determination of disturbances or a threat thereof shall be based on objective factors, including the following elements:

(a)the increase in the volume of imports in absolute terms or relative to production in the Union and to imports from other sources; and

(b)the effect of such imports on prices; or

(c)the effect of such imports on the Union industry or the economic sector concerned in relation to, inter alia, the levels of sales, production, financial situation and employment.

3.In determining whether imports are made under such conditions as to cause or threaten to cause disturbances in the markets of agricultural products or mechanisms regulating those markets, including regulations creating common market organisations (CMOs), all relevant objective factors shall be taken into consideration, including one or more of the following elements:

(a)the volume of imports in comparison with that in previous calendar or marketing years, as the case may be, internal production and consumption, and future levels planned in accordance with the reform of CMOs;

(b)the level of internal prices in comparison with the reference or target prices, if applicable, and, if not applicable, in comparison with the average internal market prices during the same period of previous marketing years;

(c)in the markets for products under tariff heading 1701, situations where during two consecutive months the average Union market price of white sugar falls below 80 % of the average Union market price for white sugar during the previous marketing year.

4.In determining whether the conditions referred to in paragraphs 1, 2 and 3 are met in the case of the outermost regions of the Union, the analyses shall be restricted to the territory of the outermost region or regions concerned. Particular attention shall be paid to the size of the local industry, its financial situation and the employment situation.

Article 12 Initiation of proceedings

1.An investigation shall be initiated upon request by a Member State or on the Commission's own initiative if it is apparent to the Commission that there is sufficient evidence to justify such initiation.

2.The Member States shall inform the Commission if trends in imports from any of the regions or states listed in Annex I appear to call for safeguard measures. That information shall include the evidence available, as determined on the basis of the criteria laid down in Article 11. The Commission shall pass that information on to all Member States within three working days of receipt thereof.

3.Where it is apparent that there is sufficient evidence to justify the initiation of proceedings, the Commission shall publish a notice in the Official Journal of the European Union. Proceedings shall be initiated within one month of the date of receipt of information from a Member State.

The Commission shall inform the Member States of its analysis of the information normally within 21 days of the date on which the information was provided to the Commission.

4.If the Commission takes the view that any of the circumstances set out in Article 10 exist, it shall immediately notify the region or state listed in Annex I concerned of its intention to initiate an investigation. The notification may be accompanied by an invitation for consultations with a view to clarifying the situation and arriving at a mutually satisfactory solution.

Article 13 Investigation

1.Following the initiation of proceedings, the Commission shall commence an investigation.

2.The Commission may request Member States to provide information, and Member States shall take whatever steps are necessary in order to give effect to any such request. Where that information is of general interest or where its transmission was requested by a Member State, the Commission shall forward it to all Member States provided that it is not confidential; if it is confidential, the Commission shall forward a non-confidential summary.

3.In the event of an investigation restricted to an outermost region of the Union, the Commission may request the competent local authorities to provide the information referred to in paragraph 2 via the Member State concerned.

4.The investigation shall, whenever possible, be concluded within six months of its initiation. In exceptional circumstances, that time limit may be extended by a further period of three months.

Article 14 Imposition of provisional safeguard measures

1.Provisional safeguard measures shall be applied in critical circumstances where a delay would cause damage which would be difficult to repair, pursuant to a preliminary determination that any of the circumstances set out in Article 10 exist. Such provisional safeguard measures shall be adopted in accordance with the advisory procedure referred to in Article 19(4), or, in cases of urgency, in accordance with Article 19(6).

2.In view of the particular situation of outermost regions of the Union and their vulnerability to any surge in imports, provisional safeguard measures shall be applied in proceedings that concern them where a preliminary determination has shown that imports have increased. Those provisional safeguard measures shall be adopted in accordance with the advisory procedure referred to in Article 19(4), or, in cases of urgency, in accordance with Article 19(6).

3.Where a Member State requests immediate intervention by the Commission and where the conditions laid down in paragraph 1 or 2 are met, the Commission shall take a decision within five working days of receipt of the request.

4.Provisional safeguard measures may take the form of an increase in the customs duty on the product concerned up to a level which does not exceed the customs duty applied to other WTO members, or tariff quotas.

5.Provisional safeguard measures shall not apply for more than 180 days. Where provisional measures are restricted to outermost regions, they shall not apply for more than 200 days.

6.If the provisional safeguard measures are repealed because the investigation shows that the conditions laid down in Articles 10 and 11 are not met, any duty collected as a result of those measures shall be refunded automatically.

Article 15 Termination of proceedings and investigations without measures

Where safeguard measures are deemed unnecessary, the proceedings and investigations shall be terminated in accordance with the examination procedure referred to in Article 19(5).

Article 16 Imposition of definitive safeguard measures

1.Where the facts as finally established show that any of the circumstances set out in Article 10 exist, the Commission shall request consultations with the region or state concerned in the context of the appropriate institutional arrangement set up in the relevant agreements permitting a region or state to be included in Annex I, with a view to seeking a mutually satisfactory solution.

2.If the consultations referred to in paragraph 1 of this Article do not lead to a mutually satisfactory solution within 30 days of the matter being referred to the region or state concerned, a decision to impose definitive safeguard measures shall be taken by the Commission in accordance with the examination procedure referred to in Article 19(5) within 20 working days of the end of the consultation period.

3.Definitive safeguard measures may take one of the following forms:

(a)a suspension of the further reduction of the rate of import duty for the product concerned originating in the region or state concerned;

(b)an increase in the customs duty on the product concerned up to a level which does not exceed the customs duty applied to other WTO members;

(c)a tariff quota.

4.No definitive safeguard measure shall be applied on the same product from the same region or state less than one year after previous such measures have lapsed or been removed.

Article 17 Duration and review of safeguard measures

1.A safeguard measure shall remain in force only for such period of time as may be necessary to prevent or remedy the serious injury or disturbances. That period shall not exceed two years, including the duration of any provisional measure, unless it is extended in accordance with paragraph 2. Where the measure is restricted to one or several of the outermost regions of the Union, the period of application may not exceed four years.

2.The initial period of duration of a safeguard measure may exceptionally be extended provided that it is determined that the safeguard measure continues to be necessary to prevent or remedy serious injury or disturbances.

3.Extensions shall be adopted in accordance with the procedures set out in this Regulation applicable to investigations using the same procedures as the initial measures.

The total duration of a safeguard measure may not exceed four years, including any provisional measure. In the event of a measure restricted to one or several of the outermost regions of the Union, that limit shall be extended to eight years.

4.If the duration of a safeguard measure exceeds one year, it shall be progressively liberalised at regular intervals during its period of application, including any extension.

Consultations with the region or state concerned shall be held periodically in the appropriate institutional bodies set up under the relevant agreements, with a view to establishing a timetable for the abolition of safeguard measures as soon as circumstances permit.

Article 18 Surveillance measures

1.Where the trend in imports of a product originating in an ACP State is such that such imports could cause any of the circumstances referred to in Article 10, imports of that product may be made subject to prior Union surveillance.

2.The decision to impose surveillance shall be taken by the Commission in accordance with the advisory procedure referred to in Article 19(4).

3.Surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid at the end of the second six-month period following the first six months after the measures were introduced.

4.Surveillance measures may be restricted to the territory of one or several of the outermost regions of the Union, where necessary.

5.The decision to impose surveillance measures shall be communicated immediately to the appropriate institutional body set up in the relevant agreements permitting a region or state to be included in Annex I.

Article 19 Committee procedure

1.For the purposes of Articles 14, 15, 16 and 18 of this Regulation, the Commission shall be assisted by the Committee on Safeguards established by Article 3(1) of Regulation (EU) 2015/478 of the European Parliament and of the Council(11). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.For the purposes of Articles 5 and 6 of this Regulation and for the purposes of Article 6(11) and (13) and Article 36(4) of Annex II to this Regulation, the Commission shall be assisted by the Customs Code Committee established by Article 285(1) of Regulation (EU) No 952/2013 of the European Parliament and of the Council(12). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

3.For the purposes of Articles 7 and 8 of this Regulation, the Commission shall be assisted by the Committee for the Common Organisation of the Agricultural Markets established by Article 229(1) of Regulation (EU) No 1308/2013 of the European Parliament and of the Council(13). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

4.Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

5.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

6.Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof, shall apply.

Article 20 Exceptional measures with limited territorial application

Where it emerges that the conditions laid down for the adoption of safeguard measures are met in one or more Member States, the Commission, after having examined alternative solutions, may exceptionally authorise the application of surveillance or safeguard measures restricted to the Member State or Member States concerned if it considers that such measures applied at that level are more appropriate than measures applied throughout the Union. Such measures shall be of a strictly limited duration and, insofar as possible, shall not disrupt the operation of the internal market.

CHAPTER V PROCEDURAL PROVISIONS

Article 21 Adaptation to technical developments

The Commission is empowered to adopt delegated acts in accordance with Article 22 concerning technical amendments to Article 6 and Articles 9 to 20 which may be required as a result of differences between this Regulation and agreements signed with provisional application or concluded in accordance with Article 218 TFEU with the regions or states listed in Annex I.

Article 22 Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for a period of five years from 21 June 2013. The power to adopt delegated acts referred to in Article 2(2) and (3), Article 4(3), Article 5(3) and Article 21 shall be conferred on the Commission for a period of five years from 20 February 2014. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.The delegation of power referred to in Article 2(2) and (3), Article 3, Article 4(3), Article 5(3) and Article 21 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.A delegated act adopted pursuant to Article 3, Article 4(3), Article 5(3) or Article 21 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

7.A delegated act adopted pursuant to Article 2(2) and (3) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by four months at the initiative of the European Parliament or of the Council.

Article 23 Report

The Commission shall include information on the implementation of this Regulation in its annual report on the application and implementation of trade defence measures presented to the European Parliament and to the Council pursuant to Article 22a of Council Regulation (EC) No 1225/2009(14).

CHAPTER VI FINAL PROVISIONS

Article 24 Repeal

Regulation (EC) No 1528/2007 is repealed.

References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table set out in Annex IV.

Article 25 Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

ANNEX I LIST OF REGIONS OR STATES WHICH HAVE CONCLUDED NEGOTIATIONS WITHIN THE MEANING OF ARTICLE 2(2)

• ANTIGUA AND BARBUDA

• THE COMMONWEALTH OF THE BAHAMAS

• BARBADOS

• BELIZE

• THE REPUBLIC OF BOTSWANA

• THE REPUBLIC OF CAMEROON

• [^F1 THE UNION OF COMOROS^F1]

• THE REPUBLIC OF CÔTE D'IVOIRE

• THE COMMONWEALTH OF DOMINICA

• THE DOMINICAN REPUBLIC

• THE REPUBLIC OF FIJI

• THE REPUBLIC OF GHANA

• GRENADA

• THE COOPERATIVE REPUBLIC OF GUYANA

• JAMAICA

• THE REPUBLIC OF KENYA

• [^F2 THE KINGDOM OF LESOTHO^F2]

• THE REPUBLIC OF MADAGASCAR

• THE REPUBLIC OF MAURITIUS

• [^F2 THE REPUBLIC OF MOZAMBIQUE^F2]

• THE REPUBLIC OF NAMIBIA

• THE INDEPENDENT STATE OF PAPUA NEW GUINEA

• FEDERATION OF SAINT KITTS AND NEVIS

• SAINT LUCIA

• SAINT VINCENT AND THE GRENADINES

• [^F3 THE INDEPENDENT STATE OF SAMOA^F3]

• THE REPUBLIC OF SEYCHELLES

• [^F4 SOLOMON ISLANDS^F4]

• THE REPUBLIC OF SURINAME

• THE KINGDOM OF SWAZILAND

• THE REPUBLIC OF TRINIDAD AND TOBAGO

• THE REPUBLIC OF ZIMBABWE

ANNEX II Rules of origin CONCERNING THE DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’ AND METHODS OF ADMINISTRATIVE COOPERATION

TITLE I GENERAL PROVISIONS

Article 1 Definitions

For the purposes of this Annex, the following definitions apply:

TITLE II DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’

Article 2 General requirements

1. For the purposes of this Regulation, the following products shall be considered as originating in the ACP States listed in Annex I, hereinafter, for the purpose of this Annex, referred to as ‘ACP States’:

(a)products wholly obtained in the ACP States within the meaning of Article 3 of this Annex;

(b)products obtained in the ACP States incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the ACP States within the meaning of Article 4 of this Annex.

2.For the purpose of the implementation of paragraph 1, the territories of the ACP States shall be considered as being one territory.

Originating products made up of materials wholly obtained or sufficiently worked or processed in two or more ACP States shall be considered as products originating in the ACP State where the last working or processing took place, provided the working or processing carried out there goes beyond the operations referred to in Article 5 of this Annex.

3.For products listed in Appendix 10, paragraph 2 shall apply only after 1 October 2015.

Article 3 Wholly obtained products

1.The following shall be considered as wholly obtained in the ACP States or in the Union:

(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 aquaculture, including mariculture, where the fish are born and raised there;

(g)products of sea fishing and other products taken from the sea outside the territorial waters by their vessels;

(h)products made aboard their factory ships exclusively from products referred to in point (g);

(i)used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;

(j)waste and scrap resulting from manufacturing operations conducted there;

(k)products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;

(l)goods produced there exclusively from the products specified in points (a) to (k).

2. The terms ‘their vessels’ and ‘their factory ships’ in points (g) and (h) of paragraph 1 shall apply only to vessels and factory ships which:

(a)are registered in a Member State or in an ACP State;

(b)fly the flag of a Member State or of an ACP State;

(c)meet one of the following conditions:

3. Notwithstanding paragraph 2, the Union shall, upon request by an ACP State, recognise vessels chartered or leased by the ACP State to undertake fisheries activities in its exclusive economic zone as ‘their vessels’ under the following conditions:

(a)that the ACP State offered the Union the opportunity to negotiate a fisheries agreement and the Union did not accept that offer;

(b)that the charter or lease contract has been accepted by the Commission as providing adequate opportunities for the development of the capacity of the ACP State to fish on its own account and in particular as conferring on the ACP State the responsibility for the nautical and commercial management of the vessel placed at its disposal for a significant period of time.

Article 4 Sufficiently worked or processed products

1.For the purposes of this Annex, products which are not wholly obtained shall be considered to be sufficiently worked or processed in the ACP States or in the Union, when the conditions set out in the list in Appendix 2 or in Appendix 2A are fulfilled. Those conditions indicate, for all products covered by this Regulation, 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 Appendices 2 and 2A, should not be used in the manufacture of a given product may nevertheless be used, provided that:

(a)their total value does not exceed 15 % of the ex-works price of the product;

(b)none of the percentages given in the list for the maximum value of non-originating materials are exceeded through the application of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3. (a) Notwithstanding paragraph 1 and after prior notification of the Commission by a Pacific ACP State, processed fishery products of headings 1604 and 1605 processed or manufactured in on-land premises in that State from non-originating materials of heading 0302 or 0303 that have been landed in a port of that State shall be considered as sufficiently worked or processed for the purposes of Article 2. The notification to the Commission shall indicate the development benefits to the fisheries sector in that State, and shall include the necessary information concerning the species concerned, the products to be manufactured and an indication of the respective quantities to be involved.

(b)A report to the Union on the implementation of point (a) shall be drawn up by the Pacific ACP State no later than three years after the notification.

(c)Point (a) shall apply without prejudice to sanitary and phytosanitary measures in force in the Union, effective conservation and sustainable management of fishing resources and support to combat illegal, unreported and unregulated fishing activities in the region.

4.Paragraphs 1, 2 and 3 shall apply except as provided for in Article 5.

Article 5 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 4 are satisfied:

(a)preserving operations to ensure that the products remain 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 the removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;

(c)changes of packaging and breaking up and assembly of packages;

(d)simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations;

(e)affixing marks, labels and other like distinguishing signs on products or their packaging;

(f)simple mixing of products, whether or not of different kinds; mixing of sugar with any other material;

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

(h)a combination of two or more of the operations specified in points (a) to (g);

(i)slaughter of animals;

(j)husking, partial or total bleaching, polishing and glazing of cereals and rice;

(k)operations to colour sugar or form sugar lumps; partial or total milling of sugar;

(l)peeling, stoning and shelling of fruits, nuts and vegetables.

2.All the operations carried out in either the ACP States or the Union 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 6 Cumulation of origin

Cumulation with the OCT and the Union

1.Materials originating in the Union or in the OCT shall be considered as materials originating in the ACP States when incorporated into a product obtained there. It shall not be necessary for such materials to have undergone sufficient working or processing, provided they have undergone working or processing beyond that referred to in Article 5.

2.Working and processing carried out in the Union or in the OCT shall be considered as having been carried out in the ACP States when the materials undergo subsequent working or processing in the ACP States beyond that referred to in Article 5.

3.For the purpose of determining whether the products originate in the OCT, the provisions of this Annex shall apply mutatis mutandis.

4.For products listed in Appendix 10, the provisions of this Article shall apply only after 1 October 2015.

Cumulation with South Africa

5.Subject to the provisions of paragraphs 6, 7, 8 and 11, materials originating in South Africa shall be considered as originating in the ACP States when incorporated into a product obtained there provided they have undergone working or processing beyond that referred to in Article 5. It shall not be necessary for such materials to have undergone sufficient working or processing.

6.Products which have acquired originating status by virtue of paragraph 5 shall continue to be considered as products originating in the ACP States only when the value added there exceeds the value of the materials used that originate in South Africa. If that is not so, the products concerned shall be considered as originating in South Africa. In the allocation of origin, no account shall be taken of materials originating in South Africa which have undergone sufficient working or processing in the ACP States.

7.The cumulation provided for in paragraph 5 shall not apply to the products listed in Appendices 7, 10 and 11.

8.The cumulation provided for in paragraph 5 shall apply to the products listed in Appendix 8 only when the tariffs on those products in the framework of the TDCA have been eliminated. The Commission shall publish the date on which the conditions of this paragraph have been fulfilled in the Official Journal of the European Union (C series).

9.Without prejudice to paragraphs 7 and 8, working and processing carried out in South Africa shall be considered as having been carried out in another Member State of the South African Customs Union (SACU), being an ACP State, when the materials undergo subsequent working or processing in that other Member State of the SACU.

10.Without prejudice to paragraphs 7 and 8 and at the request of the ACP States, working and processing carried out in South Africa shall be considered as having been carried out in the ACP States when the materials undergo subsequent working or processing in an ACP State within the context of a regional economic integration agreement.

11.The requests of the ACP States shall be decided on in accordance with the examination procedure referred to in Article 19(5) of this Regulation.

12.The cumulation provided for in paragraph 5 may be applied only where the South African materials used have acquired the status of originating products through the application of rules of origin identical to those set out in this Annex. The cumulation provided for in paragraphs 9 and 10 may be applied only through the application of rules of origin identical to those set out in this Annex.

Cumulation with neighbouring developing countries

13.At the request of the ACP States, materials originating in a neighbouring developing country, other than an ACP State, belonging to a coherent geographical entity, shall be considered as materials originating in the ACP States when incorporated into a product obtained there. It shall not be necessary for such materials to have undergone sufficient working or processing, provided that:

• the working or processing carried out in the ACP State exceeds the operations listed in Article 5,

• the ACP States, the Union and the other countries concerned have concluded an agreement on adequate administrative procedures which will ensure correct implementation of this paragraph.

This paragraph shall not apply to tuna products classified under Harmonised System Chapter 3 or 16 and to rice products under tariff heading 1006.

For the purpose of determining whether products originate in a neighbouring developing country, the provisions of this Annex shall apply.

The requests of the ACP States shall be decided on in accordance with the examination procedure referred to in Article 19(5) of this Regulation. Such decisions shall also identify the products for which cumulation provided for under this paragraph may not be permitted.

Article 7 Unit of qualification

1.The unit of qualification for the application of this Annex shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System.

This means that:

(a)when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole shall constitute the unit of qualification;

(b)when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product shall be taken individually when this Annex is applied.

2.Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 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 Harmonised System, shall be regarded as originating when all the 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 is an originating product, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

TITLE III TERRITORIAL REQUIREMENTS

Article 11 Principle of territoriality

1.Except as provided for in Article 6, the conditions for acquiring originating status set out in Title II shall be fulfilled without interruption in the ACP States.

2.Except as provided for in Article 6, if originating goods exported from the ACP States, the Union or the OCT to another country return, they shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a)the returning goods are the same 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 in this Regulation shall apply only to products that satisfy the requirements of this Annex and are transported directly between the territory of the ACP States, of the Union, of the OCT or of South Africa for the purposes of Article 6 without entering any other territory. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, transhipment 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 an ACP State or of the Union.

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:

or

(c)failing those, any substantiating documents.

Article 13 Exhibitions

1.Originating products sent from an ACP State for exhibition in a country or a territory other than those referred to in Article 6 and sold after the exhibition for importation into the Union shall benefit on importation from the provisions of this Regulation provided it is shown to the satisfaction of the customs authorities that:

(a)an exporter has consigned those products from an ACP State to the country or territory 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 Union;

(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 shall be issued or made out in accordance with the provisions of Title IV and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition shall be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required.

3.Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products and during which the products remain under customs control.

TITLE IV PROOF OF ORIGIN

Article 14 General requirements

1.Products originating in the ACP States shall, on importation into the Union, benefit from the provisions of this Regulation upon submission of either:

(a)a movement certificate EUR.1, a specimen of which appears in Appendix 3; or

(b) in the cases specified in Article 19(1), a declaration, hereinafter referred to as the ‘invoice declaration’, 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. The text of the invoice declaration appears in Appendix 4.

2.Notwithstanding paragraph 1, originating products within the meaning of this Annex shall, in the cases specified in Article 25, benefit from the provisions of this Regulation without it being necessary to submit any of the documents referred to in that paragraph.

Article 15 Procedure for the issue of a movement certificate EUR.1

1.A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by the authorised representative of the exporter.

2.For that purpose, the exporter or the authorised representative of the exporter shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Appendix 3. Those forms shall be completed in accordance with the provisions of this Annex. If they are handwritten, they shall be completed in ink in printed characters. The description of the products shall be given in the box reserved for that purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line shall be drawn below the last line of the description, the empty space being crossed through.

3.The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting ACP State where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Annex.

4.A movement certificate EUR.1 shall be issued by the customs authorities of the exporting ACP State if the products concerned can be considered as products originating in the ACP States or in one of the other countries or territories referred to in Article 6 and fulfil the other requirements of this Annex.

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 Annex. For that purpose they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. The issuing customs authorities shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

6.The date of issue of the movement certificate EUR.1 shall be indicated in box 11 of the certificate.

7.A movement certificate EUR.1 shall be issued by the customs authorities and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 16 Movement certificates EUR.1 issued retrospectively

1.Notwithstanding Article 15(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:

(a)it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or

(b)it is demonstrated to the satisfaction of the customs authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons.

2.For the implementation of paragraph 1, the exporter shall indicate in the application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for that request.

3.The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application complies with that in the corresponding file.

4.Movement certificates EUR.1 issued retrospectively shall be endorsed with the following phrase:

‘ISSUED RETROSPECTIVELY’

5.The endorsement referred to in paragraph 4 shall be inserted in box 7 of the movement certificate EUR.1.

Article 17 Issue of a duplicate movement certificate EUR.1

1.In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may apply to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2.The duplicate issued in this way shall be endorsed with the following word:

‘DUPLICATE’

3.The endorsement referred to in paragraph 2 shall be inserted in box 7 of the duplicate movement certificate EUR.1.

4.The duplicate, which shall bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Article 18 Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously

When originating products are placed under the control of a customs office in an ACP State or in the Union, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 for the purpose of sending all or some of those products elsewhere within the ACP States or within the Union. The replacement movement certificate or certificates EUR.1 shall be issued by the customs office under whose control the products are placed.

Article 19 Conditions for making out an invoice declaration

1.An invoice declaration as referred to in point (b) of Article 14(1) may be made out:

(a)by an approved exporter within the meaning of Article 20; or

(b)by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6 000.

2.An invoice declaration may be made out if the products concerned can be considered as products originating in the ACP States or in one of the other countries or territories referred to in Article 6 and fulfil the other requirements of this Annex.

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 Annex.

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 Appendix 4 using one of the linguistic versions set out in that Appendix 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 20 shall not be required to sign such declarations provided that he or she gives the customs authorities of the exporting country a written undertaking that he or she accepts full responsibility for any invoice declaration which identifies him or her as if it had been signed in manuscript by him or her.

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 20 Approved exporter

1.The customs authorities of the exporting country may authorise any exporter who makes frequent shipments of products under the provisions of this Regulation to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation shall 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 Annex.

2.The customs authorities of the exporting country may grant the status of approved exporter subject to any conditions which they consider appropriate.

3.The customs authorities of the exporting country shall grant to the approved exporter a customs authorisation number which shall appear on the invoice declaration.

4.The customs authorities of the exporting country shall monitor the use of the authorisation by the approved exporter.

5.The customs authorities of the exporting country may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise makes incorrect use of the authorisation.

Article 21 Validity of proof of origin

1.A proof of origin shall be valid for ten months from the date of issue in the exporting country and shall be submitted within that 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 those 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 final date.

Article 22 Transit procedure

When the products enter an ACP State other than the country of origin, a further period of validity of four months shall begin on the date on which the customs authorities in the country of transit enter the following in box 7 of the movement certificate EUR.1:

• the word ‘transit’,

• the name of the country of transit,

• the official stamp, a specimen of which had been made available to the Commission, in conformity with Article 31, and

• the date of the endorsements.

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. Those 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 Regulation.

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 Harmonised System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 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 Annex and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, that declaration can be made on the customs declaration CN22/CN23 or on a sheet of paper annexed to that document.

2.Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.

3.Furthermore, the total value of those products shall not exceed EUR 500 in the case of small packages or EUR 1 200 in the case of products forming part of travellers' personal luggage.

Article 26 Information procedure for cumulation purposes

1.When Articles 2(2) and 6(1) are applied, evidence of the originating status within the meaning of this Annex of the materials coming from the other ACP States, the Union or the OCT shall be given by a movement certificate EUR.1 or by the supplier's declaration, a specimen of which is given in Appendix 5A, given by the exporter in the State or OCT from which the materials came.

2.When Article 2(2) and Article 6(2) and (9) are applied, evidence of the working or processing carried out in other ACP States, the Union, the OCT or South Africa shall be given by the supplier's declaration, a specimen of which appears in Appendix 5B, given by the exporter in the State or OCT from which the materials came.

3.A separate supplier's declaration shall be given by the supplier for each consignment of material on the commercial invoice relating to that shipment or in an annex to that invoice, or on a delivery note or other commercial document relating to that shipment which describes the materials concerned in sufficient detail for them to be identified.

4.The supplier's declaration may be made out on a pre-printed form.

5.The suppliers' declarations shall be signed in manuscript. However, where the invoice and the supplier's declaration are established using electronic data-processing methods, the supplier's declaration need not be signed in manuscript provided the responsible official in the supplying company is identified to the satisfaction of the customs authorities in the State where the suppliers' declarations are drawn up. Those customs authorities may lay down conditions for the implementation of this paragraph.

6.The supplier's declarations shall be submitted to the competent customs office in the exporting ACP State that has been requested to issue the movement certificate EUR.1.

Article 27 Supporting documents

The documents referred to in Articles 15(3) and 19(3) used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in an ACP State or in one of the other countries or territories referred to in Article 6 and fulfil the other requirements of this Annex may consist inter alia of the following:

Article 28 Preservation of proof of origin and supporting documents

1.The exporter applying for the issue of a movement certificate EUR.1 shall keep the documents referred to in Article 15(3) for at least three years.

2.The exporter making out an invoice declaration shall keep a copy of that invoice declaration as well as the documents referred to in Article 19(3) for at least three years.

3.The customs authorities of the exporting country issuing a movement certificate EUR.1 shall keep the application form referred to in Article 15(2) for at least three years.

4.The customs authorities of the importing country shall keep the movement certificates EUR.1 and the invoice declarations submitted to them for at least three years.

Article 29 Discrepancies and formal errors

1.The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void if it is duly established that that document does correspond to the products submitted.

2.Obvious formal errors such as typing errors on a proof of origin should not cause that document to be rejected if those errors are not such as to create doubts concerning the correctness of the statements made in that document.

Article 30 Amounts expressed in euro

1.For the application of Article 19(1)(b) and Article 25(3) in cases where products are invoiced in a currency other than euro, amounts in the national currencies of an ACP State, of the Member States and of the other countries or territories referred to in Article 6 equivalent to the amounts expressed in euro shall be fixed annually by each of the countries concerned.

2.A consignment shall benefit from the provisions of Article 19(1)(b) or Article 25(3) by reference to the currency in which the invoice is drawn up, according to the amount fixed by the country concerned.

3.The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in euro as on the first working day of October each year. The amounts shall be communicated to the Commission by 15 October and shall apply from 1 January the following year. The Commission shall notify all countries concerned of the relevant amounts.

4.A country may round up or down the amount resulting from the conversion of an amount expressed in euro into its national currency. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 %. A country may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, before any rounding-off, results in an increase of less than 15 % in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion would result in a decrease in that equivalent value.

5.The amounts expressed in euro shall be reviewed by the Commission. When carrying out that review, the Commission shall consider the desirability of preserving the effects of the limits concerned in real terms. For that purpose, it may decide to modify the amounts expressed in euro.

TITLE V ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31 Mutual assistance

1.The ACP States shall send the Commission specimens of the stamps used together with the addresses of the customs authorities competent to issue movement certificates EUR.1 and carry out the subsequent verification of movement certificates EUR.1 and invoice declarations.

Movement certificates EUR.1 and invoice declarations shall be accepted for the purpose of applying preferential treatment from the date the information is received by the Commission.

The Commission shall send that information to the customs authorities of the Member States.

2.In order to ensure the proper application of this Annex, the Union, the OCT and the ACP States shall assist each other, through the competent customs administrations, in checking the authenticity of movement certificates EUR.1, invoice declarations or supplier's declarations and the correctness of the information given in those documents.

The authorities consulted shall provide the relevant information concerning the conditions under which a product has been made, indicating in particular the conditions in which the rules of origin have been complied with in the various ACP States, Member States and OCT concerned.

Article 32 Verification of proofs of origin

1.Subsequent verifications of proofs of origin shall be carried out at random or whenever the customs authorities of the importing country have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Annex.

2.For the purposes of implementing paragraph 1, the customs authorities of the importing country shall return the movement certificate EUR.1 and the invoice, if it has been submitted, the invoice declaration, or a copy of those documents to the customs authorities of the exporting country giving, where appropriate, the reasons for the request for verification. Any documents and information obtained suggesting that the information given on the proof or origin is incorrect shall be forwarded in support of the request for verification.

3.The verification shall be carried out by the customs authorities of the exporting country. For that 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 that verification as soon as possible. Those results shall indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the ACP States or in one of the countries or territories referred to in Article 6 and fulfil the other requirements of this Annex.

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

7.Where the verification procedure or any other information available appears to indicate that the provisions of this Annex are being contravened, appropriate enquires shall be carried out with due urgency to identify and prevent such contraventions.

Article 33 Verification of suppliers' declarations

1.Verification of suppliers' declarations shall be carried out at random or whenever the customs authorities of the importing State have reasonable doubts as to the authenticity of the document or the accuracy or completeness of the information concerning the true origin of the materials in question.

2.The customs authorities to which a supplier's declaration is submitted may request the customs authorities of the State where the declaration was made to issue an information certificate, a specimen of which appears in Appendix 6. Alternatively, the customs authorities to which a supplier's declaration is submitted may request the exporter to produce an information certificate issued by the customs authorities of the State where the declaration was made.

A copy of the information certificate shall be preserved by the office which issued it for at least three years.

3.The customs authorities requesting the verification shall be informed of the results of the verification as soon as possible. The results shall indicate clearly whether the declaration concerning the status of the materials is correct.

4.For the purpose of verification, suppliers shall keep a copy of the document containing the declaration together with all necessary evidence showing the true status of the materials for not less than three years.

5.The customs authorities in the State where the supplier's declaration is drawn up shall have the right to call for any evidence or to carry out any check which they consider appropriate in order to verify the correctness of any supplier's declaration.

6.Any movement certificate EUR.1 or invoice declaration issued or made out on the basis of an incorrect supplier's declaration shall be considered null and void.

Article 34 Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining preferential treatment for products.

Article 35 Free zones

1.All necessary steps shall be taken to ensure that products traded under cover of a proof of origin or a supplier's declaration and 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 way of derogation from paragraph 1, when originating products 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 movement certificate EUR.1 at the exporter's request if the treatment or processing undergone complies with the provisions of this Annex.

Article 36 Derogations

1.On its own initiative or in response to a request from a beneficiary country the Commission may grant a beneficiary country a temporary derogation from the provisions of this Annex where:

(a)internal or external factors temporarily deprive it of the ability to comply with the rules for the acquisition of origin laid down in this Annex where it could do so previously; or

(b)it requires time to prepare itself to comply with the rules for the acquisition of origin laid down in this Annex.

2.Such a temporary derogation shall be limited to the duration of the effect of the internal or external factors giving rise to it or the length of time needed for the beneficiary country to achieve compliance with the rules.

3.A request for derogation shall be made in writing to the Commission. It shall state the reasons as indicated in paragraph 1 why a derogation is required and shall include appropriate supporting documents.

4.Measures under this Article shall be adopted in accordance with the examination procedure referred to in Article 19(5) of this Regulation.

The Union shall respond positively to all requests by ACP States which are duly justified in accordance with this Article and which cannot cause serious injury to an established Union industry.

TITLE VI CEUTA AND MELILLA

Article 37 Special conditions

1. The term ‘Union’ used in this Annex shall not cover Ceuta and Melilla. The term ‘products originating in the Union’ shall not cover products originating in Ceuta and Melilla.

2.The provisions of this Annex shall apply mutatis mutandis in determining whether products may be deemed as originating in the ACP States when imported into Ceuta and Melilla.

3.Where products wholly obtained in Ceuta, Melilla or the Union undergo working and processing in the ACP States, they shall be considered as having been wholly obtained in the ACP States.

4.Working or processing carried out in Ceuta, Melilla or the Union shall be considered as having been carried out in the ACP States, when materials undergo further working or processing in the ACP States.

5.For the purpose of implementation of paragraphs 3 and 4 of this Article, the insufficient operations listed in Article 5 shall not be considered as working or processing.

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

TITLE VII FINAL PROVISION

Article 38 Appendices

The Appendices to this Annex shall form an integral part thereof.

Appendix 1

Introductory notes to the list in appendix 2

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 4 of this Annex.

Note 2:

Note 3:

Note 4:

Note 5:

Note 6:

Note 7:

Appendix 2

List of working or processing required to be carried out on non-originating materials in order for the product manufactured to acquire originating status

The products included in the list may not all be covered by this Regulation. It is therefore necessary to consult the other parts of this Regulation.