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2004/635/EC: Council Decision of 21 April 2004 concerning the conclusion of a Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part
Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part - Protocols - Final Act - Declarations - Agreement in the form of an Exchange of Letters between the Community and Egypt concerning imports into the Community of fresh cut flowers and flowers and flower buds falling within subheading 0603 10 of the Common Customs Tariff

OJ L 304, 30.9.2004, p. 38–57 (ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV)
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30.9.2004   

EN

Official Journal of the European Union

L 304/38


COUNCIL DECISION

of 21 April 2004

concerning the conclusion of a Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part

(2004/635/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310, in conjunction with the second sentence of Article 300(2) and the second subparagraph of Article 300(3) thereof (1),

Having regard to the proposal from the Commission (2),

Having regard to the assent of the European Parliament (3),

Whereas:

(1)

The Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, signed on behalf of the European Community, in Luxembourg on 25 June 2001, should be approved.

(2)

The provisions of this Agreement that fall within the scope of Part III, Title IV of the Treaty establishing the European Community bind the United Kingdom and Ireland as separate Contracting Parties, and not as part of the European Community, until the United Kingdom or Ireland (as the case may be) notifies the Arab Republic of Egypt that it has become bound as part of the European Community in accordance with the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community. The same applies to Denmark, in accordance with the Protocol annexed to those Treaties on the position of Denmark,

HAS DECIDED AS FOLLOWS:

Article 1

The Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part (hereinafter referred to as the Association Agreement), together with the Annexes and Protocols annexed thereto, and the joint declarations, declarations by the European Community and Exchange of Letters attached to the Final Act, are hereby approved on behalf of the European Community.

The texts referred to in the first subparagraph are attached to this Decision.

Article 2

1.   The position to be taken by the Community within the Association Council, and within the Association Committee when the latter is empowered to act by the Association Council, shall be determined by the Council on the basis of a proposal by the Commission, in accordance with the corresponding provisions of the Treaties.

2.   In accordance with Article 75 of the Association Agreement the President of the Council shall preside over the Association Council. A representative of the Commission shall preside over the Association Committee, in accordance with the Rules of Procedure thereof.

3.   The decision to publish the decisions of the Association Council and the Association Committee in the Official Journal of the European Union shall be taken on a case-by-case basis by the Council.

Article 3

The President of the Council, on behalf of the European Community, is hereby authorised to designate the persons empowered to give the notification provided for in Article 92 of the Association Agreement.

Done at Luxembourg, 21 April 2004.

For the Council

The President

J. WALSH


(1)  The European Community has taken over all rights and obligations of the European Coal and Steel Community following the latter's expiry on 23 July 2002 (OJ L 194, 23.7.2002, p. 35).

(2)  OJ C 304 E, 30.10.2001, p. 2.

(3)  OJ C 153 E, 27.6.2002, p. 264.


EURO-MEDITERRANEAN AGREEMENT

establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE AUSTRIAN REPUBLIC,

THE PORTUGUESE REPUBLIC,

THE FINNISH REPUBLIC,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY and the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as the ‘Member States’, and

the EUROPEAN COMMUNITY, and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as ‘the Community’,

of the one part, and

THE ARAB REPUBLIC OF EGYPT, hereinafter referred to as ‘Egypt’,

of the other part,

CONSIDERING the importance of the existing traditional links between the Community, its Member States and Egypt, and the common values that they share,

CONSIDERING that the Community, its Member States and Egypt wish to strengthen those links and to establish lasting relations based on partnership and reciprocity,

CONSIDERING the importance which the Parties attach to the principles of the United Nations Charter, particularly the observance of human rights, democratic principles and political and economic freedoms which form the very basis of the Association,

DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,

CONSIDERING the difference in economic and social development existing between Egypt and the Community and the need to strengthen the process of economic and social development in Egypt,

DESIROUS of enhancing their economic relations and, in particular, the development of trade, investment and technological cooperation, supported by a regular dialogue, on economic, scientific, technological, cultural, audiovisual and social matters with a view to improving mutual knowledge and understanding,

CONSIDERING the commitment of the Community and Egypt to free trade, and in particular to compliance with the rights and obligations arising out of the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements annexed to the agreement establishing the World Trade Organisation,

CONSCIOUS of the need to associate their efforts to strengthen political stability and economic development in the region through the encouragement of regional cooperation,

CONVINCED that the Association Agreement will create a new climate for their relations,

HAVE AGREED AS FOLLOWS:

Article 1

1.   An Association is hereby established between the Community and its Member States of the one part and Egypt of the other part.

2.   The aims of this Agreement are:

to provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties,

to establish conditions for the progressive liberalisation of trade in goods, services and capital,

to foster the development of balanced economic and social relations between the Parties through dialogue and cooperation,

to contribute to the economic and social development of Egypt,

to encourage regional cooperation with a view to the consolidation of peaceful co-existence and economic and political stability,

to promote cooperation in other areas which are of mutual interest.

Article 2

Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect of democratic principles and fundamental human rights as set out in the Universal Declaration on Human Rights, which guides their internal and international policy and constitutes an essential element of this Agreement.

TITLE I

POLITICAL DIALOGUE

Article 3

1.   A regular political dialogue shall be established between the Parties. It shall strengthen their relations, contribute to the development of a lasting partnership and increase mutual understanding and solidarity.

2.   The political dialogue and cooperation shall aim, in particular, to:

develop better mutual understanding and an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other Party,

enable each Party to consider the position and interests of the other,

enhance regional security and stability,

promote common initiatives.

Article 4

The political dialogue shall cover all subjects of common interest, and, in particular peace, security, democracy and regional development.

Article 5

1.   The political dialogue shall take place at regular intervals and whenever necessary, in particular:

(a)

at ministerial level, mainly in the framework of the Association Council;

(b)

at senior official level of Egypt of the one part, and of the Presidency of the Council and of the Commission of the other;

(c)

by taking full advantage of all diplomatic channels including regular briefings by officials, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;

(d)

by any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.

2.   There shall be a political dialogue between the European Parliament and the Egyptian People's Assembly.

TITLE II

FREE MOVEMENT OF GOODS

BASIC PRINCIPLES

Article 6

The Community and Egypt shall gradually establish a free trade area over a transitional period not exceeding 12 years from the entry into force of this Agreement, according to the modalities set out in this Title and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the GATT.

CHAPTER 1

Industrial products

Article 7

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 25 to 97 of the Combined Nomenclature and of the Egyptian Customs tariff with the exception of the products listed in Annex I.

Article 8

Imports into the Community of products originating in Egypt shall be allowed free of customs duties and of any other charge having equivalent effect and free of quantitative restrictions and of any other restriction having equivalent effect.

Article 9

1.   Customs duties and charges having equivalent effect applicable on import into Egypt of products originating in the Community listed in Annex II shall be gradually abolished in accordance with the following schedule:

on the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,

one year after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,

two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 25 % of the basic duty,

three years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

2.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex III shall be gradually abolished in accordance with the following schedule:

three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,

four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,

five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,

six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty,

seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,

eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty,

nine years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

3.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex IV shall be gradually abolished in accordance with the following schedule:

five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 95 % of the basic duty,

six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,

seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,

eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,

nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty,

10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,

11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty,

12 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

4.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex V shall be gradually abolished in accordance with the following schedule:

six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,

seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,

eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty,

nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,

10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,

11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,

12 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,

13 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty,

14 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10 % of the basic duty,

15 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

5.   Customs duties and charges having equivalent effect applicable to imports into Egypt of products originating in the Community, other than those in Annexes II, III, IV and V shall be abolished in accordance with the relevant schedule on the basis of a decision of the Association Committee.

6.   In the event of serious difficulties for a given product, the relevant timetables in accordance with paragraphs 1, 2, 3 and 4 may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Egypt may suspend the timetable provisionally for a period that may not exceed one year.

7.   For each product concerned, the basic duty to be gradually reduced as provided for in paragraphs 1, 2, 3 and 4 shall be the rates referred to in Article 18.

Article 10

The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 11

1.   By way of derogation from the provisions of Article 9, Egypt may take exceptional measures of limited duration to increase or re-introduce customs duties.

2.   Such measures may only apply to new and infant industries or to sectors undergoing restructuring or experiencing serious difficulties, particularly where those difficulties entail severe social problems.

3.   Customs duties on import into Egypt of products originating in the Community that are introduced by such exceptional measures may not exceed 25 % ad valorem, and must retain a preferential margin for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 20 % of total imports of industrial products from the Community during the last year for which statistics are available.

4.   Such measures shall be applied for no longer than five years, except where a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period.

5.   Such measures may not be introduced for a given product if more than three years have elapsed since the abolition of all duties, quantitative restrictions and charges and measures having equivalent effect on the product concerned.

6.   Egypt shall inform the Association Committee of any exceptional measures it intends to adopt and, at the Community's request, consultations shall be held on the measures and sectors concerned before they are implemented. When adopting such measures, Egypt shall provide the Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule.

7.   By way of derogation from the provisions of paragraph 4, the Association Committee may exceptionally, in order to take into account the difficulties involved in setting up new industries, endorse the measures already taken by Egypt pursuant to paragraph 1 for a maximum period of four years beyond the 12 years transitional period.

CHAPTER 2

Agricultural, fisheries and processed agricultural products

Article 12

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 1 to 24 of the Combined Nomenclature and of the Egyptian Customs tariff and to the products listed in Annex I.

Article 13

The Community and Egypt shall progressively establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products of interest to both parties.

Article 14

1.   Agricultural products originating in Egypt listed in Protocol 1 on importation into the Community shall be subject to the arrangements set out in that Protocol.

2.   Agricultural products originating in the Community listed in Protocol 2 on importation into Egypt shall be subject to the arrangements set out in that Protocol.

3.   Trade for processed agricultural products falling under this chapter shall be subject to the arrangements set out in Protocol 3.

Article 15

1.   During the third year of implementation of the Agreement, the Community and Egypt shall examine the situation in order to determine the measures to be applied by the Community and Egypt from the beginning of the fourth year after the entry into force of the Agreement, in accordance with the objective set out in Article 13.

2.   Without prejudice to the provisions of paragraph 1 and taking account of the volume of trade in agricultural, fisheries and processed agricultural products between them and of their particular sensitivity, the Community and Egypt shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.

Article 16

1.   In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned.

2.   In such cases, the Party concerned shall inform the Association Committee. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party.

3.   If the Community or Egypt, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement.

4.   The application of this Article should be the subject of consultations in the Association Council.

CHAPTER 3

Common provisions

Article 17

1.   No new quantitative restrictions on imports or any other restriction having equivalent effect shall be introduced in trade between the Community and Egypt.

2.   Quantitative restrictions on imports and any other restriction having equivalent effect in trade between the Community and Egypt shall be abolished from the entry into force of this Agreement.

3.   The Community and Egypt shall not apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures having equivalent effect.

Article 18

1.   The applicable rates for imports between the Parties shall be the WTO bound rate or lower applied rate enforced as of 1 January 1999. If, after 1 January 1999, a tariff reduction is applied on an erga omnes basis, the reduced rate shall apply.

2.   No new customs duties on imports or exports, or charges having equivalent effect, shall be introduced, nor shall those already applied be increased, in trade between the Community and Egypt, unless this Agreement provides otherwise.

3.   The Parties shall communicate to each other their respective applied rates on 1 January 1999.

Article 19

1.   Products originating in Egypt shall not, on importation into the Community, be accorded a treatment more favourable than that which the Member States apply among themselves.

2.   Application of the provisions of this Agreement shall be without prejudice to the special provisions for the application of the Community law to the Canary Islands.

Article 20

1.   The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

2.   Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them either directly or indirectly.

Article 21

1.   This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in this Agreement.

2.   Consultation between the Parties shall take place within the Association Council concerning agreements establishing customs unions or free trade areas and, where requested, on other major issues related to their respective trade policy with third countries. In particular, in the event of a third country acceding to the Union, such consultation shall take place so as to ensure that account can be taken of the mutual interests of the Parties.

Article 22

If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of the provisions of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on the Implementation of Article VI of the GATT 1994 and related internal legislation.

Article 23

Without prejudice to Article 34, the WTO Agreement on Subsidies and Countervailing Measures shall apply between the Parties.

Until the necessary rules referred to in Article 34(2) are adopted, if either Party finds that subsidy is taking place in trade with the other party within the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate measures against this practice in accordance with the WTO Agreement on Subsidies and Countervailing Measures and related internal legislation.

Article 24

1.   The provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards shall apply between the Parties.

2.   Before applying safeguard measures pursuant to the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards, the Party intending to apply such measures shall supply the Association Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

In order to find such a solution, the Parties shall immediately hold consultations within the Association Committee. If, as a result of the consultations, the Parties do not reach an agreement within 30 days of the initiation of the consultations on a solution to avoid the application of the safeguard measures, the Party intending to apply safeguard measures may apply the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards.

3.   In the selection of safeguard measures pursuant to this Article, the Parties shall give priority to those which cause least disturbance to the achievement of the objectives of this Agreement.

4.   Safeguard measures shall be notified immediately to the Association Committee and shall be the subject of periodic consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

Article 25

1.   Where compliance with the provisions of Article 17(3) leads to:

(i)

re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties, or measures having equivalent effect, or

(ii)

a serious shortage, or threat thereof, of a product essential to the exporting Party;

and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures, according to the procedures laid down in paragraph 2.

2.   The difficulties arising from the situations referred to in paragraph 1 shall be submitted for examination to the Association Committee. The Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.

Article 26

Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, of the protection of health and life of humans, animals or plants, of the protection of national treasures possessing artistic, historic or archaeological value, of the protection of intellectual property or of regulations concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 27

The concept of ‘originating products’ for the application of the provisions of this Title and the methods of administrative cooperation relating to them are set out in Protocol 4.

Article 28

The Combined Nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Egyptian customs tariff shall be applied to the classification of goods for imports into Egypt.

TITLE III

RIGHT OF ESTABLISHMENT AND SUPPLY OF SERVICES

Article 29

1.   The Parties reaffirm their respective commitments under the terms of the General Agreement on Trade in Services (GATS) annexed to the Agreement establishing the WTO, and in particular the commitment to accord each other most-favoured-nation treatment in trade in service sectors covered by these commitments.

2.   In accordance with the GATS, this treatment shall not apply to:

(a)

advantages accorded by either Party under the provisions of an agreement as defined in Article V of the GATS or under measures adopted on the basis of such an agreement;

(b)

other advantages accorded pursuant to the list of most-favoured-nation exemptions annexed by either Party to the GATS.

Article 30

1.   The Parties will consider extending the scope of the Agreement to include the right of establishment of companies of one Party in the territory of another Party and the liberalisation of the supply of services by companies of one Party to service consumers in another Party.

2.   The Association Council shall make the necessary recommendations for the implementation of the objective set out in paragraph 1.

When formulating these recommendations, the Association Council shall take into account the experience gained by the implementation of the MFN treatment granted to each other by the Parties in accordance with their respective obligations under the GATS, and in particular Article V thereof.

3.   The objective set out in paragraph 1 of this Article shall be subject to a first examination by the Association Council at the latest five years after the entry into force of this Agreement.

TITLE IV

CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS

CHAPTER 1

Payments and capital movements

Article 31

Subject to the provisions of Article 33, the Parties undertake to authorise, in fully convertible currency, any payments to the current account.

Article 32

1.   The Community and Egypt will ensure, from the entry into force of the Agreement, the free circulation of capital for direct investments made in companies formed in accordance with the laws of the host country, and the liquidation or repatriation of these investments and of any profit stemming therefrom.

2.   The Parties will hold consultations with a view to facilitating the movement of capital between the Community and Egypt and achieve its complete liberalisation as soon as conditions are met.

Article 33

Where one or several Member States of the Community or Egypt face, or risk facing, serious difficulties concerning balance of payments, the Community or Egypt respectively may, in conformity with the conditions laid down within the framework of the GATT and Articles VIII and XIV of the Statutes of the International Monetary Fund, take restrictive measures with regard to current payments if such measures are strictly necessary. The Community or Egypt, as appropriate, shall inform the other Party immediately thereof and shall provide as soon as possible a timetable for the removal of such measures.

CHAPTER 2

Competition and other economic matters

Article 34

1.   The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Egypt:

(i)

all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii)

abuse by one or more undertakings of a dominant position in the territories of the Community or Egypt as a whole or in a substantial part thereof;

(iii)

any public aid which distorts, or threatens to distort, competition by favouring certain undertakings or the production of certain goods.

2.   The Association Council shall, within five years of the entry into force of the Agreement, adopt by decision the necessary rules for the implementation of paragraph 1.

Until these rules are adopted, the provisions of Article 23 shall be applied as regards the implementation of paragraph 1(iii).

3.   Each Party shall ensure transparency in the area of public aid, inter alia, by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.

4.   With regard to agricultural products referred to in Title II, Chapter 2, paragraph 1(iii) does not apply. The WTO Agreement on Agriculture and the relevant provisions on WTO Agreement on Subsidies and Countervailing Duties shall apply with regard to these products.

5.   If the Community or Egypt considers that a particular practice is incompatible with the terms of paragraph 1, and:

is not adequately dealt with under the implementing rules referred to in paragraph 2, or

in the absence of such rules, and if such practice causes, or threatens to cause, serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry.

It may take appropriate measures after consultation within the Association Committee or after 30 working days following referral for such consultation.

With reference to practices incompatible with paragraph 1(iii), such appropriate measures, when the WTO rules are applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by the WTO or by any other relevant instrument negotiated under its auspices and applicable to the Parties.

6.   Notwithstanding any provisions to the contrary adopted in conformity with paragraph 2, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.

Article 35

The Member States and Egypt shall progressively adjust, without prejudice to their commitments to the GATT, any State monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Egypt. The Association Committee will be informed of the measures adopted to implement this objective.

Article 36

With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Association Council shall ensure that, as from the fifth year following the date of entry into force of this Agreement, there is neither enacted nor maintained any measure distorting trade between the Community and Egypt contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to these enterprises.

Article 37

1.   Pursuant to the provisions of this Article and of Annex VI, the Parties shall grant and ensure adequate and effective protection of intellectual property rights in accordance with the prevailing international standards, including effective means of enforcing such rights.

2.   The implementation of this Article and of Annex VI shall be regularly reviewed by the Parties. If problems in the area of intellectual property affecting trading conditions were to occur, urgent consultations shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions.

Article 38

The Parties agree on the objective of a progressive liberalisation of public procurement. The Association Council will hold consultations on the implementation of this objective.

TITLE V

ECONOMIC COOPERATION

Article 39

Objectives

1.   The Parties undertake to intensify economic cooperation in their mutual interest.

2.   The aim of economic cooperation shall be to:

encourage the implementation of the overall objectives of this Agreement,

promote balanced economic relations between the Parties,

support Egypt's own efforts to achieve sustainable economic and social development.

Article 40

Scope

1.   Cooperation shall focus primarily on sectors suffering from internal difficulties or affected by the overall process of liberalisation of the Egyptian economy, and in particular by the liberalisation of trade between Egypt and the Community.

2.   Similarly, cooperation shall focus on areas likely to bring the economies of the Community and Egypt closer together, particularly those which will generate growth and employment.

3.   Cooperation shall encourage the implementation of measures designed to develop intra-regional cooperation.

4.   Conservation of the environment and ecological balance shall be taken into account in the implementation of the various sectors of economic cooperation to which it is relevant.

5.   The Parties may agree to extend the economic cooperation to other sectors not covered by the provisions of this Title.

Article 41

Methods and modalities

Economic cooperation shall be implemented in particular by:

(a)

a regular economic dialogue between the Parties, which covers all areas of macroeconomic policy;

(b)

regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts;

(c)

transfer of advice, expertise and training;

(d)

implementation of joint actions such as seminars and workshops;

(e)

technical, administrative and regulatory assistance.

Article 42

Education and training

The Parties shall cooperate with the objective of identifying and employing the most effective means to improve significantly education and vocational training, in particular with regard to public and private enterprises, trade-related services, public administrations and authorities, technical agencies, standardisation and certification bodies and other relevant organisations. In this context, the access of women to higher education and training will receive special attention.

Cooperation shall also encourage the establishment of links between specialised bodies in the Community and in Egypt and shall promote the exchange of information and experience and the pooling of technical resources.

Article 43

Scientific and technological cooperation

Cooperation shall have the objective of:

(a)

encouraging the establishment of durable links between the scientific communities of the Parties, notably through:

the access of Egypt to Community R & D programmes, in conformity with existing provisions concerning the participation of third countries,

the participation of Egypt in networks of decentralised cooperation,

the promotion of synergy between training and research;

(b)

strengthening research capacity in Egypt;

(c)

stimulating technological innovation, transfer of new technologies, and dissemination of know-how.

Article 44

Environment

1.   Cooperation shall aim at preventing deterioration of the environment, controlling pollution and ensuring the rational use of natural resources, with a view to ensuring sustainable development.

2.   Cooperation shall focus, in particular, on:

desertification,

quality of Mediterranean water and the control and prevention of marine pollution,

water resource management,

energy management,

waste management,

salinisation,

environmental management of sensitive coastal areas,

the impact of industrial development and the safety of industrial plant in particular,

the impact of agriculture on soil and water quality,

environmental education and awareness.

Article 45

Industrial cooperation

Cooperation shall promote and encourage in particular:

the debate regarding industrial policy and competitiveness in an open economy,

industrial cooperation between economic operators in the Community and in Egypt, including access for Egypt to the Community's networks for the rapprochement of businesses and to networks created in the context of decentralised cooperation,

modernisation and restructuring of Egyptian industry,

the establishment of an environment favourable to the development of private enterprise, in order to stimulate the growth and the diversification of industrial production,

technology transfer, innovation and R & D,

the enhancement of human resources,

access to the capital market for the financing of productive investments.

Article 46

Investments and promotion of investments

Cooperation shall aim at increasing the flow of capital, expertise and technology to Egypt through, inter alia:

appropriate means of identifying investment opportunities and information channels on investment regulations,

providing information on European investment regimes (such as technical assistance, direct financial support, fiscal incentives and investment insurance) related to outward investments and enhancing the possibility for Egypt to benefit from them,

a legal environment conducive to investment between the two Parties, where appropriate through the conclusion by the Member States and Egypt of investment protection agreements, and agreements to prevent double taxation,

examining the creation of joint ventures, especially for SMEs and, when appropriate, the conclusion of agreements between the Member States and Egypt,

establishing mechanisms for encouraging and promoting investments.

Cooperation may extend to the planning and implementation of projects demonstrating the effective acquisition and use of basic technologies, the use of standards, the development of human resources and the creation of jobs locally.

Article 47

Standardisation and conformity assessment

The Parties shall aim to reduce differences in standardisation and conformity assessment. Cooperation in this field shall focus in particular on:

(a)

rules in the field of standardisation, metrology, quality standards, and recognition of conformity, in particular as regards sanitary and phytosanitary standards for agricultural products and foodstuffs;

(b)

upgrading the level of Egyptian conformity assessment bodies, with a view to the establishment, in due time, of mutual recognition agreements in the area of conformity assessment;

(c)

developing structures for the protection of intellectual, industrial and commercial property rights, for standardisation and for setting quality standards.

Article 48

Approximation of laws

The Parties shall use their best endeavours to approximate their respective laws in order to facilitate the implementation of this Agreement.

Article 49

Financial services

The Parties shall cooperate with a view to the rapprochement of their standards and rules, in particular:

(a)

to encourage the strengthening and restructuring of the financial sector in Egypt;

(b)

to improve accounting and supervisory and regulatory systems of banking, insurance and other parts of the financial sector in Egypt.

Article 50

Agriculture and fisheries

Cooperation shall be aimed at:

(a)

the modernisation and restructuring of agriculture and fisheries, including: the modernisation of infrastructures and of equipment; the development of packaging, storage and marketing techniques; the improvement of private distribution channels;

(b)

the diversification of production and of external outlets, inter alia, through the encouragement of joint ventures in the agri-business sector;

(c)

the promotion of cooperation in veterinary and phytosanitary matters and in growing techniques, with the objective of facilitating trade between the Parties. In this regard, the Parties shall exchange information.

Article 51

Transport

Cooperation shall be aimed at:

the restructuring and modernisation of road, port and airport infrastructures linked to the main trans-European lines of communication of common interest,

the establishment and enforcement of operating standards comparable to those prevailing in the Community,

the upgrading of technical equipment for road/rail transport, container traffic and transhipment,

the improvement of management of airports, railways and air traffic control, including cooperation between the relevant national bodies,

the improvement of navigation aids.

Article 52

Information society and telecommunications

The Parties recognise that information and communication technologies constitute a key element of modern society, vital to economic and social development and a cornerstone of the emerging information society.

The cooperation activities between the Parties in this field shall aim at :

a dialogue on issues related to the different aspects of the information society, including telecommunications policies,

the exchanges of information and eventual technical assistance with regulatory matters, standardisation, conformity testing and certification in relation to information technologies and telecommunications,

the diffusion of new information and communications technologies and the refinement of new applications in these fields,

the implementation of joint projects for research, technical development or industrial applications in information technologies, communications, telematics and information society,

the participation of Egyptian organisations in pilot projects and European programmes within the established frameworks,

interconnection between networks and the interoperability of telematic services in the Community and Egypt.

Article 53

Energy

The priority areas of cooperation shall be:

the promotion of renewable energies,

the promotion of energy-saving and energy efficiency,

applied research into data bank networks in the economic and social sectors, linking Community and Egyptian operators in particular,

support for the modernisation and development of energy networks and for their linking to European Community networks.

Article 54

Tourism

Priorities for cooperation shall be:

promoting investments in tourism,

improving the knowledge of the tourist industry and ensuring greater consistency of policies affecting tourism,

promoting a good seasonal spread of tourism,

promoting cooperation between regions and cities of neighbouring countries,

highlighting the importance of the cultural heritage for tourism,

ensuring that the interaction between tourism and the environment is suitably maintained,

making tourism more competitive through support for increased professionalism.

Article 55

Customs

1.   The Parties shall develop customs cooperation to ensure that the provisions on trade are observed. Cooperation will focus in particular on:

(a)

the simplification of controls and procedures concerning the customs clearance of goods;

(b)

the introduction of the single administrative document and a system to link up the Community's and Egypt's transit arrangements.

2.   Without prejudice to other forms of cooperation envisaged in this Agreement, notably for the fight against drugs and money laundering, the Parties' administrations will provide mutual assistance in accordance with the provisions of Protocol 5.

Article 56

Cooperation on statistics

The main objective of cooperation in this field shall be to harmonise methodology in order to create a reliable basis for handling statistics in all the fields that are covered by this Agreement and lend themselves to the establishment of statistics.

Article 57

Money laundering

1.   The Parties shall cooperate with a view in particular to preventing the use of their financial systems to launder the proceeds arising from criminal activities in general and drug trafficking in particular.

2.   Cooperation in this field shall include, in particular, technical and administrative assistance aimed at establishing effective standards relating to the fight against money laundering in line with international standards.

Article 58

Fight against drugs

1   The Parties shall cooperate with a view in particular to:

improving the effectiveness of policies and measures to counter the supply of, and illicit trafficking in, narcotic drugs and psycho-tropic substances and the reduction of the abuse of these products,

encouraging a joint approach to reducing demand.

2.   The Parties shall determine together, in accordance with their respective legislation, the strategies and cooperation methods appropriate for attaining these objectives. Their operations, other than joint operations, shall form the subject of consultations and close coordination.

The relevant governmental and non-governmental sector bodies, in accordance with their own powers, working with the competent bodies of Egypt, the Community and its Member States, may take part in these operations.

3.   Cooperation shall take the form of exchanges of information and, where appropriate, joint activities on:

establishment or extension of social and health institutions and information centres for the treatment and rehabilitation of drug addicts,

implementation of projects in the areas of prevention, training and epidemiological research,

establishment of effective standards relating to the prevention of the diversion of precursors and other essential substances used for the illicit production of narcotic drugs and psychotropic substances, in line with international standards.

Article 59

Fight against terrorism

In accordance with international conventions and with their respective national legislations, the Parties shall cooperate in this field and focus in particular on:

exchange of information on means and methods used to counter terrorism,

exchange of experiences in respect of terrorism prevention,

joint research and studies in the area of terrorism prevention.

Article 60

Regional cooperation

Regional cooperation shall focus on:

development of economic infrastructures,

scientific and technological research,

intra-regional trade,

customs matters,

cultural matters,

environmental issues.

Article 61

Consumer protection

Cooperation in this field should be geared to making consumer protection schemes in the European Community and Egypt compatible and should, as far as possible, involve:

increasing the compatibility of consumer legislation in order to avoid barriers to trade,

establishment and development of systems of mutual information on dangerous food and industrial products and interconnecting them (rapid alert systems),

exchanges of information and experts,

organising training schemes and supplying technical assistance.

TITLE VI

CHAPTER 1

Dialogue and cooperation on social matters

Article 62

The Parties reaffirm the importance they attach to the fair treatment of their workers legally residing and employed in the territory of the other Party. The Member States and Egypt, at the request of any of them, agree to initiate talks on reciprocal bilateral agreements related to the working conditions and social security rights of Egyptian and Member State workers legally resident and employed in their respective territory.

Article 63

1.   The Parties shall conduct regular dialogue on social matters which are of interest to them.

2.   This dialogue shall be used to find ways to achieve progress in the field of movement of workers and equal treatment and social integration of Egyptian and Community nationals legally residing in the territories of their host countries.

3.   The dialogue shall notably cover all issues related to:

(a)

migrant communities' living and working conditions;

(b)

migration;

(c)

illegal migration;

(d)

actions to encourage equal treatment between Egyptian and Community nationals, mutual knowledge of cultures and civilizations, the furthering of tolerance and the removal of discrimination.

Article 64

Dialogue on social matters shall be conducted in accordance with the same procedures as those provided for in Title I of this Agreement.

Article 65

With a view to consolidating cooperation between the Parties in the social field, projects and programmes shall be carried out in any area of interest to them.

Priority will be given to:

(a)

reducing migratory pressures, notably by improving living conditions, creating jobs, and income generating activities and developing training in areas from which emigrants come;

(b)

promoting the role of women in economic and social development;

(c)

bolstering and developing Egyptian family planning and mother and child protection programmes;

(d)

improving the social protection system;

(e)

improving the health care system;

(f)

improving living conditions in poor areas;

(g)

implementing and financing exchange and leisure programmes for mixed groups of Egyptian and European young people residing in the Member States, with a view to promoting mutual knowledge of their respective cultures and fostering tolerance.

Article 66

Cooperation schemes may be carried out in cooperation with the Member States and the relevant international organisations.

Article 67

A working group shall be set up by the Association Council by the end of the first year following the entry into force of this Agreement. It shall be responsible for the continuous and regular evaluation of the implementation of Chapters 1 to 3.

CHAPTER 2

Cooperation for the prevention and control of illegal immigration and other consular issues

Article 68

The Parties agree to cooperate in order to prevent and control illegal immigration. To this end:

each of the Member States agrees to readmit any of its nationals illegally present on the territory of Egypt, upon request by the latter and without further formalities once such persons have been positively identified as such,

Egypt agrees to readmit any of its nationals illegally present on the territory of a Member State, upon request by the latter and without further formalities once such persons have been positively identified as such.

The Member States and Egypt will also provide their nationals with appropriate identity documents for such purposes.

In respect of the Member States of the European Union, the obligations in this Article shall apply only in respect of those persons who are to be considered their nationals for Community purposes.

In respect of Egypt, the obligation in this Article shall apply only in respect of those persons who are considered nationals of Egypt in accordance to the Egyptian legal system and all the relevant laws concerning citizenship.

Article 69

After the entry into force of the Agreement, the Parties, at the request of any of them, shall negotiate and conclude bilateral agreements with each other, regulating specific obligations for the readmission of their nationals. These agreements shall also cover, if deemed necessary by any of the Parties, arrangements for the readmission of third country nationals. Such agreements will lay down the details about the categories of persons covered by these arrangements as well as the modalities of their readmission.

Adequate financial and technical assistance to implement these agreements will be provided to Egypt.

Article 70

The Association Council shall examine what other joint efforts can be made to prevent and control illegal immigration as well as deal with other consular issues.

CHAPTER 3

Cooperation in cultural matters, audiovisual media and information

Article 71

1.   The Parties agree to promote cultural cooperation in fields of mutual interest and in a spirit of respect for each other's cultures. They shall establish a sustainable cultural dialogue. This cooperation shall promote in particular:

conservation and restoration of historic and cultural heritage (such as monuments, sites, artefacts, rare books and manuscripts),

exchange of art exhibitions, troupes of performing arts, artists, men of letters, intellectuals and cultural events,

translations,

training of persons working in the cultural field.

2.   Cooperation in the field of audiovisual media shall seek to encourage cooperation in such areas as co-production and training. The Parties shall seek ways to encourage Egyptian participation in Community initiatives in this sector.

3.   The Parties agree that existing cultural programmes of the Community and of one or more of the Member States and further activities of interest to both sides can be extended to Egypt.

4.   The Parties shall, in addition, work to promote cultural cooperation of a commercial nature, particularly through joint projects (production, investment and marketing), training and exchange of information.

5.   The Parties shall, in identifying cooperation projects, programmes and joint activities, give special attention to young people, self-expression, heritage conservation issues, the dissemination of culture, and communication skills using written and audiovisual media.

6.   Cooperation shall be implemented in particular through:

a regular dialogue between the Parties,

regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts,

transfer of advice, expertise and training,

implementation of joint actions such as seminars and workshops,

technical, administrative and regulatory assistance,

dissemination of information on cooperation initiatives.

TITLE VII

FINANCIAL COOPERATION

Article 72

In order to achieve the objectives of this Agreement, a financial cooperation package shall be made available to Egypt in accordance with the appropriate procedures and the financial resources required.

Financial cooperation shall focus on:

promoting reforms designed to modernise the economy,

upgrading economic infrastructure,

promoting private investment and job-creating activities,

responding to the economic repercussions for Egypt of the gradual introduction of a free trade area, notably by upgrading and restructuring industry and enhancing Egypt's export capacity,

accompanying measures for policies implemented in the social sector,

promoting Egypt's capacity and capabilities in the field of the protection of intellectual property rights,

where appropriate, supplementary measures for the implementation of bilateral agreements to prevent and control illegal immigration,

accompanying measures for the establishment and implementation of competition legislation.

Article 73

In order to ensure that a coordinated approach is adopted to any exceptional macro-economic and financial problems that might arise as a result of the implementation of this Agreement, the Parties shall use the regular economic dialogue provided for in Title V to give particular attention to monitoring trade and financial trends in relations between the Community and Egypt.

TITLE VIII

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 74

An Association Council is hereby established which shall meet at ministerial level once a year and when circumstances require, at the initiative of its President and in accordance with the conditions laid down in its rules of procedure.

It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.

Article 75

1.   The Association Council shall consist of the members of the Council of the European Union and of the Commission of the European Communities, on the one hand, and members of the Government of Egypt, on the other.

2.   Members of the Association Council may arrange to be represented in accordance with the provisions laid down in its rules of procedure.

3.   The Association Council shall establish its rules of procedure.

4.   The Association Council shall be presided in turn by a member of the Council of the European Union and a member of the Government of Egypt, in accordance with the provisions laid down in its rules of procedure.

Article 76

The Association Council shall, for the purpose of attaining the objectives of the Agreement, have the power to take decisions in the cases provided for therein.

The decisions taken shall be binding on the Parties, which shall take the measures necessary to implement them. The Association Council may also make appropriate recommendations.

The Association Council shall draw up its decisions and recommendations by agreement between the two Parties.

Article 77

1.   Subject to the powers of the Association Council, an Association Committee is hereby established which shall be responsible for the implementation of the Agreement.

2.   The Association Council may delegate to the Association Committee, in full or in part, any of its powers.

Article 78

1.   The Association Committee, which shall meet at official level, shall consist of representatives of members of the Council of the European Union and of the Commission of the European Communities, on the one hand, and of representatives of the Government of Egypt, on the other.

2.   The Association Committee shall establish its rules of procedure.

3.   The Association Committee shall be presided in turn by a representative of the Presidency of the Council of the European Union and by a representative of the Government of Egypt.

Article 79

1.   The Association Committee shall have the power to take decisions for the management of the Agreement as well as in the areas in which the Association Council has delegated its powers to it.

2.   The Association Committee shall draw up its decisions by agreement between the two Parties. These decisions shall be binding on the Parties which shall take the measures necessary to implement the decisions taken.

Article 80

The Association Council may decide to set up any working group or body necessary for the implementation of the Agreement. It shall define the terms of reference of any such working group or body that shall be subordinate to it.

Article 81

The Association Council shall take all appropriate measures to facilitate cooperation and contacts between the European Parliament and the Egyptian People's Assembly.

Article 82

1.   Each of the Parties may refer to the Association Council any dispute relating to the application or interpretation of this Agreement.

2.   The Association Council may settle the dispute by means of a decision.

3.   Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.

4.   In the event of it not being possible to settle the dispute in accordance with paragraph 2, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one party to the dispute.

The Association Council shall appoint a third arbitrator.

The arbitrators' decisions shall be taken by majority vote.

Each party to the dispute must take the steps required to implement the decision of the arbitrators.

Article 83

Nothing in this Agreement shall prevent a Party from taking any measures:

(a)

which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b)

which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c)

which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 84

In the fields covered by this Agreement and without prejudice to any special provisions contained therein:

the arrangements applied by Egypt in respect of the Community shall not give rise to any discrimination between the Member States, their nationals or their companies or firms,

the arrangements applied by the Community in respect of Egypt shall not give rise to discrimination between Egyptian nationals or its companies or firms.

Article 85

As regards direct taxation, nothing in this Agreement shall have the effect of:

extending the fiscal advantages granted by either Party in any international agreement or arrangement by which it is bound,

preventing the adoption or application by either Party of any measure aimed at preventing the avoidance or evasion of taxes,

opposing the right of either Party to apply the relevant provisions of its tax legislation to taxpayers who are not in identical situation, in particular as regards their place of residence.

Article 86

1.   The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.

2.   If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of a material breach of this Agreement by the other Party, it shall supply the Association Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

A material breach of this Agreement shall consist of the repudiation of this Agreement not sanctioned by the general rules of international law or a grave violation of an essential element of this Agreement, creating an environment not conducive for consultations or where a delay would be detrimental to the objectives of this Agreement.

3.   In the selection of the appropriate measures referred to in paragraph 2, priority must be given to those which least disturb the functioning of this Agreement. The Parties also agree that these measures shall be taken in accordance with international law and shall be proportional to the violation.

The measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other Party so requests. If one Party takes a measure as a result of a material breach of this Agreement referred to in paragraph 2, the other Party may invoke the dispute settlement procedure.

Article 87

Protocols 1 to 5 and Annexes I to VI shall form an integral part of this Agreement.

Article 88

For the purpose of this Agreement the term ‘Parties’ shall mean Egypt on the one hand and the Community, or the Member States, or the Community and the Member States, in accordance with their respective powers, on the other hand.

Article 89

This Agreement is concluded for an unlimited period.

Each of the Parties may denounce this Agreement by notifying the other Party. This Agreement shall cease to apply six months after the date of such notification.

Article 90

This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Community, and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of Egypt.

Article 91

This Agreement shall be drawn up in duplicate in the Arabic, Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, and Swedish languages, each of these texts being equally authentic.

Article 92

1.   This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first subparagraph have been completed.

2.   Upon its entry into force, this Agreement shall replace the Agreement between the European Economic Community and Egypt, and the Agreement between the European Coal and Steel Community and Egypt, signed in Brussels on 18 January 1977.

Hecho en Luxemburgo, el veinticinco de junio de dos mil uno.

Udfærdiget i Luxembourg den femogtyvende juni to tusind og et.

Geschehen zu Luxemburg am fünfundzwanzigsten Juni zweitausendundeins.

Έγινε στο Λουξεμβούργο, στις είκοσι πέντε Ιουνίου δύο χιλιάδες ένα.

Done at Luxembourg on the twenty-fifth day of June in the year two thousand and one.

Fait à Luxembourg, le vingt-cinq juin deux mille un.

Fatto a Lussemburgo, addì venticinque giugno duemilauno.

Gedaan te Luxemburg, de vijfentwintigste juni tweeduizendeneen.

Feito no Luxemburgo, em vinte e cinco de Junho de dois mil e um.

Tehty Luxemburgissa kahdentenakymmenentenäviidentenä päivänä kesäkuuta vuonna kaksituhattayksi.

Som skedde i Luxemburg den tjugofemte juni tjugohundraett.

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Pour le Royaume de Belgique

Voor het Koninkrijk België

Für das Königreich Belgien

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Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaams Gewest, het Waals Gewest en het Brussels Hoofdstedelijk Gewest.

Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

På Kongeriget Danmarks vegne

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Für die Bundesrepublik Deutschland

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Για την Ελληνική Δημοκρατία

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Por el Reino de España

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Pour la République française

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Thar cheann Na hÉireann

For Ireland

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Per la Repubblica italiana

Image

Pour le Grand-Duché de Luxembourg

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Voor het Koninkrijk der Nederlanden

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Für die Republik Österreich

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Pela República Portuguesa

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Suomen tasavallan puolesta

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För Konungariket Sverige

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For the United Kingdom of Great Britain and Northern Ireland

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Por las Comunidades Europeas

For De Europæiske Fællesskaber

Für die Europäischen Gemeinschaften

Για τις Ευρωπαïκές Κοινότητες

For the European Communities

Pour les Communautés européennes

Per le Comunità europee

Voor de Europese Gemeenschappen

Pelas Comunidades Europeias

Euroopan yhteisöjen puolesta

På Europeiska gemenskapernas vägnar

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LIST OF ANNEXES AND PROTOCOLS

Annex I:

List of agricultural and processed agricultural products falling within Chapters 25 to 97 of the harmonised system referred to in Articles 7 and 12.

Annex II:

Lists of industrial products originating in the Community to which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9(1).

Annex III:

Lists of industrial products originating in the Community to which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9(2).

Annex IV:

Lists of industrial products originating in the Community to which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9(3).

Annex V:

List of industrial products originating in the Community referred to in Article 9(4).

Annex VI:

Intellectual property rights referred to in Article 37.

Protocol 1:

Arrangements applicable to imports into the Community of agricultural products originating in Egypt.

Protocol 2:

Arrangements applicable to imports into Egypt of agricultural products originating in the Community.

Protocol 3:

Arrangements applicable to processed agricultural products.

Protocol 4:

Definition of the concept of ‘originating products’ and methods of administrative cooperation.

Protocol 5:

Mutual assistance between administrative authorities in customs matters.

ANNEX I

List of agricultural and processed agricultural products falling within chapters 25 to 97 of the Harmonised System referred to in Articles 7 and 12

HS code

2905 43

(mannitol)

HS code

2905 44

(sorbitol)

HS code

2905 45

(glycerol)

HS heading

3301

(essential oils)

HS code

3302 10

(odoriferous substances)

HS headings

3501 to 3505

(albuminoidal substances, modifies starches, glues)

HS code

3809 10

(finishing agents)

HS heading

3823

(industrial fatty acids, acid from oil refining, industrial fatty alcohols).

HS code

3824 60

(sorbitol n.e.p.)

HS headings

4101 to 4103

(hides and skins)

HS heading

4301

(raw fur skins)

HS headings

5001 to 5003

(raw silk and silk waste)

HS headings

5101 to 5103

(wool and animal hair)

HS headings

5201 to 5203

(raw cotton, waste and cotton carded or combed)

HS heading

5301

(raw flax)

HS heading

5302

(raw hemp)

ANNEX II

Lists of industrial products originating in the Community to which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9(1)

 

2501001

 

2502000

 

2503100

 

2503900

 

2504100

 

2504900

 

2505109

 

2505909

 

2506100

 

2506210

 

2506290

 

2507000

 

2508100

 

2508200

 

2508300

 

2508400

 

2508500

 

2508600

 

2508700

 

2509000

 

2511100

 

2511200

 

2512000

 

2513110

 

2513190

 

2513210

 

2513290

 

2514000

 

2517100

 

2517200

 

2517300

 

2517411

 

2517491

 

2518100

 

2518200

 

2518300

 

2519100

 

2519900

 

2520201

 

2521000

 

2522100

 

2522200

 

2522300

 

2524000

 

2525100

 

2525200

 

2525300

 

2526201

 

2527000

 

2528100

 

2528900

 

2529100

 

2529210

 

2529220

 

2529300

 

2530100

 

2530200

 

2530400

 

2530909

 

2601110

 

2601120

 

2601200

 

2602000

 

2603000

 

2604000

 

2605000

 

2606000

 

2607000

 

2608000

 

2609000

 

2610000

 

2611000

 

2612100

 

2612200

 

2613100

 

2613900

 

2614000

 

2615100

 

2615900

 

2616100

 

2616900

 

2617100

 

2617900

 

2618000

 

2619000

 

2620110

 

2620190

 

2620200

 

2620300

 

2620400

 

2620500

 

2620900

 

2621000

 

2701110

 

2701120

 

2701190

 

2701200

 

2702100

 

2702200

 

2703000

 

2709000

 

2710001

 

2710002

 

2711110

 

2711120

 

2711139

 

2711140

 

2711190

 

2711210

 

2711290

 

2712100

 

2712200

 

2712900

 

2713110

 

2713120

 

2713200

 

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2714100

 

2714900

 

2715000

 

2716000

 

2801200

 

2801300

 

2802000

 

2804210

 

2804290

 

2804500

 

2804610

 

2804690

 

2804700

 

2804800

 

2804900

 

2805110

 

2805190

 

2805210

 

2805220

 

2805300

 

2805400

 

2809100

 

2809201

 

2810001

 

2812100

 

2812900

 

2813100

 

2813900

 

2814100

 

2814200

 

2815200

 

2815300

 

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2816200

 

2816300

 

2817000

 

2818100

 

2818200

 

2818300

 

2819100

 

2819900

 

2820100

 

2820900

 

2821100

 

2821200

 

2822000

 

2823000

 

2825101

 

2825109

 

2825200

 

2825300

 

2825400

 

2825500

 

2825600

 

2825700

 

2825800

 

2825900

 

2826110

 

2826120

 

2826190

 

2826200

 

2826300

 

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2827100

 

2827200

 

2827310

 

2827320

 

2827330

 

2827340

 

2827350

 

2827360

 

2827370

 

2827380

 

2827390

 

2827410

 

2827490

 

2827510

 

2827590

 

2827600

 

2828909

 

2829110

 

2829199

 

2829900

 

2830100

 

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2830900

 

2831100

 

2831900

 

2832100

 

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2833210

 

2833220

 

2833230

 

2833240

 

2833250

 

2833260

 

2833270

 

2833290

 

2833300

 

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2834100

 

2834210

 

2834220

 

2834290

 

2835000

 

2835210

 

2835220

 

2835230

 

2835240

 

2835250

 

2835260

 

2835290

 

2835310

 

2835390

 

2836100

 

2836201

 

2836301

 

2836401

 

2836409

 

2836500

 

2836600

 

2836700

 

2836910

 

2836920

 

2836930

 

2836990

 

2837110

 

2837190

 

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2839000

 

2839190

 

2839200

 

2839900

 

2840110

 

2840190

 

2840200

 

2840300

 

2841100

 

2841200

 

2841300

 

2841400

 

2841500

 

2841600

 

2841700

 

2841800

 

2841900

 

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2842900

 

2843100

 

2843210

 

2843290

 

2843300

 

2843900

 

2844101

 

2844109

 

2844200

 

2844300

 

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2844500

 

2845100

 

2845900

 

2846100

 

2846900

 

2847000

 

2848100

 

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2849100

 

2849200

 

2849900

 

2850000

 

2851000

 

2901109

 

2901210

 

2901220

 

2901230

 

2901240

 

2901290

 

2901299

 

2902110

 

2902190

 

2902300

 

2902410

 

2902420

 

2902430

 

2902440

 

2902500

 

2902600

 

2902700

 

2902900

 

2902909

 

2903110

 

2903120

 

2903130

 

2903140

 

2903150

 

2903160

 

2903190

 

2903210

 

2903220

 

2903230

 

2903290

 

2903300

 

2903400

 

2903510

 

2903590

 

2903610

 

2903620

 

2903690

 

2904100

 

2904200

 

2904201

 

2904209

 

2904900

 

2905110

 

2905120

 

2905130

 

2905140

 

2905150

 

2905160

 

2905170

 

2905190

 

2905210

 

2905220

 

2905290

 

2905310

 

2905320

 

2905390

 

2905410

 

2905420

 

2905490

 

2905500

 

2906110

 

2906120

 

2906130

 

2906140

 

2906190

 

2906210

 

2906290

 

2907110

 

2907120

 

2907130

 

2907140

 

2907150

 

2907190

 

2907210

 

2907220

 

2907230

 

2907290

 

2907300

 

2908100

 

2908200

 

2908900

 

2909110

 

2909190

 

2909200

 

2909300

 

2909410

 

2909420

 

2909430

 

2909440

 

2909490

 

2909500

 

2909600

 

2910100

 

2910200

 

2910300

 

2910900

 

2911000

 

2912110

 

2912120

 

2912130

 

2912190

 

2912210

 

2912290

 

2912300

 

2912410

 

2912420

 

2912490

 

2912500

 

2913000

 

2914110

 

2914120

 

2914130

 

2914190

 

2914210

 

2914220

 

2914230

 

2914290

 

2914300

 

2914410

 

2914490

 

2914500

 

2914600

 

2914690

 

2914700

 

2915110

 

2915120

 

2915130

 

2915211

 

2915220

 

2915230

 

2915240

 

2915290

 

2915310

 

2915320

 

2915330

 

2915340

 

2915350

 

2915390

 

2915400

 

2915500

 

2915600

 

2915700

 

2915901

 

2915909

 

2916110

 

2916120

 

2916130

 

2916140

 

2916150

 

2916190

 

2916200

 

2916310

 

2916320

 

2916330

 

2916390

 

2917110

 

2917120

 

2917130

 

2917140

 

2917190

 

2917200

 

2917310

 

2917320

 

2917330

 

2917340

 

2917350

 

2917360

 

2917370

 

2917390

 

2918110

 

2918120

 

2918130

 

2918140

 

2918150

 

2918160

 

2918170

 

2918190

 

2918210

 

2918220

 

2918230

 

2918290

 

2918300

 

2918900

 

2919000

 

2920100

 

2920900

 

2921110

 

2921120

 

2921190

 

2921210

 

2921220

 

2921290

 

2921300

 

2921410

 

2921420

 

2921430

 

2921440

 

2921450

 

2921490

 

2921510

 

2921590

 

2922110

 

2922120

 

2922130

 

2922190

 

2922210

 

2922220

 

2922300

 

2922410

 

2922420

 

2922490

 

2922500

 

2923100

 

2923200

 

2923900

 

2924100

 

2924210

 

2924291

 

2924299

 

2925110

 

2925190

 

2925200

 

2926100

 

2926200

 

2926900

 

2927000

 

2928000

 

2929100

 

2929900

 

2930100

 

2930200

 

2930300

 

2930400

 

2930900

 

2931000

 

2932110

 

2932120

 

2932130

 

2932190

 

2932210

 

2932290

 

2932900

 

2933110

 

2933190

 

2933210

 

2933290

 

2933310

 

2933390

 

2933400

 

2933510

 

2933590

 

2933610

 

2933690

 

2933710

 

2933790

 

2933900

 

2934100

 

2934200

 

2934300

 

2934900

 

2935000

 

2936100

 

2936210

 

2936220

 

2936230

 

2936240

 

2936250

 

2936260

 

2936270

 

2936280

 

2936290

 

2936900

 

2937100

 

2937210

 

2937220

 

2937290

 

2937910

 

2937920

 

2937990

 

2938100

 

2938900

 

2939100

 

2939210

 

2939290

 

2939300

 

2939400

 

2939500

 

2939600

 

2939700

 

2939909

 

2940000

 

2941100

 

2941200

 

2941300

 

2941400

 

2941500

 

2941900

 

2942000

 

3001100

 

3001200

 

3001900

 

3002100

 

3002200

 

3002310

 

3002390

 

3002901

 

3002909

 

3003310

 

3003901

 

3004310

 

3004901

 

3006109

 

3006200

 

3006300

 

3006400

 

3006600

 

3101000

 

3102210

 

3104100

 

3104200

 

3104300

 

3104900

 

3105100

 

3105200

 

3105300

 

3105400

 

3105510

 

3105590

 

3105600

 

3105900

 

3201100

 

3201200

 

3201300

 

3201900

 

3202100

 

3202900

 

3203000

 

3205000

 

3211001

 

3212100

 

3214101

 

3401202

 

3402119

 

3402129

 

3402139

 

3402199

 

3403119

 

3403199

 

3403919

 

3403999

 

3404100

 

3404200

 

3404909

 

3407001

 

3507100

 

3507900

 

3701100

 

3701302

 

3701992

 

3702100

 

3702511

 

3702521

 

3702522

 

3702551

 

3702559

 

3702561

 

3702911

 

3702921

 

3702922

 

3702941

 

3702951

 

3703101

 

3703201

 

3703901

 

3801100

 

3801200

 

3801300

 

3801900

 

3802100

 

3802900

 

3803000

 

3804000

 

3805100

 

3805200

 

3805900

 

3806100

 

3806200

 

3806300

 

3806900

 

3807001

 

3807009

 

3809910

 

3809920

 

3809930

 

3809990

 

3810100

 

3810900

 

3811119

 

3811199

 

3811219

 

3811299

 

3811909

 

3812100

 

3812200

 

3812300

 

3813000

 

3814000

 

3815110

 

3815120

 

3815190

 

3815900

 

3816000

 

3817100

 

3817200

 

3818000

 

3819000

 

3820000

 

3821000

 

3822000

 

3822600

 

3901100

 

3901200

 

3901300

 

3901901

 

3901909

 

3902100

 

3902200

 

3902300

 

3902900

 

3903110

 

3903190

 

3903200

 

3903300

 

3903900

 

3904101

 

3904300

 

3904400

 

3904500

 

3904610

 

3904690

 

3904900

 

3905110

 

3905190

 

3905900

 

3906100

 

3906900

 

3907100

 

3907200

 

3907300

 

3907400

 

3907501

 

3907509

 

3907600

 

3907910

 

3907990

 

3908100

 

3908900

 

3909100

 

3909200

 

3909300

 

3909409

 

3909500

 

3910000

 

3911100

 

3911900

 

3912110

 

3912120

 

3912209

 

3912310

 

3912390

 

3912900

 

3913100

 

3913900

 

3914000

 

3915100

 

3915200

 

3915300

 

3915900

 

3917101

 

3920101

 

3921901

 

3923301

 

3923501

 

3926903

 

3926907

 

4001100

 

4001210

 

4001220

 

4001291

 

4001301

 

4002110

 

4002191

 

4002201

 

4002311

 

4002391

 

4002410

 

4002491

 

4002510

 

4002591

 

4002601

 

4002701

 

4002801

 

4002910

 

4002991

 

4003000

 

4004000

 

4014100

 

4016101

 

4016921

 

4016992

 

4016993

 

4017001

 

4104101

 

4104102

 

4104291

 

4105191

 

4106191

 

4110000

 

4205001

 

4206101

 

4401100

 

4401210

 

4401220

 

4401300

 

4402000

 

4403100

 

4403200

 

4403201

 

4403209

 

4403310

 

4403320

 

4403330

 

4403340

 

4403350

 

4403910

 

4403920

 

4403991

 

4403999

 

4404100

 

4404200

 

4406100

 

4406900

 

4407100

 

4407210

 

4407220

 

4407230

 

4407910

 

4407920

 

4407990

 

4408101

 

4408201

 

4408901

 

4413000

 

4417001

 

4421901

 

4421903

 

4501100

 

4501900

 

4503100

 

4701000

 

4702000

 

4703110

 

4703190

 

4703210

 

4703290

 

4704110

 

4704190

 

4704210

 

4704290

 

4705000

 

4706100

 

4706910

 

4706920

 

4706930

 

4707100

 

4707200

 

4707300

 

4707900

 

4801000

 

4802521

 

4802601

 

4810991

 

4811311

 

4811312

 

4811391

 

4812000

 

4819501

 

4823901

 

4823903

 

4823904

 

4901100

 

4901910

 

4901990

 

4902100

 

4902900

 

4903000

 

4904000

 

4905010

 

4905910

 

4905990

 

4906000

 

4907001

 

4907002

 

4907010

 

4907020

 

4911993

 

5004001

 

5104000

 

5105101

 

5105291

 

5303100

 

5303900

 

5304100

 

5304900

 

5305110

 

5305190

 

5305210

 

5305290

 

5305910

 

5404102

 

5405002

 

5407101

 

5501100

 

5501200

 

5501300

 

5501900

 

5502000

 

5503100

 

5503200

 

5503300

 

5503400

 

5503900

 

5504100

 

5504900

 

5505100

 

5505200

 

5506100

 

5506200

 

5506300

 

5506900

 

5507000

 

5602101

 

5602210

 

5602290

 

5602900

 

5902100

 

5902200

 

5902300

 

5902900

 

5903902

 

6812200

 

6812400

 

6812700

 

6812901

 

6815201

 

7001000

 

7002100

 

7002311

 

7002321

 

7011100

 

7011200

 

7011900

 

7017100

 

7017200

 

7017900

 

7019391

 

7102100

 

7102210

 

7102290

 

7102310

 

7104200

 

7105100

 

7105900

 

7106910

 

7106921

 

7108120

 

7108131

 

7108200

 

7110111

 

7110191

 

7110211

 

7110291

 

7110311

 

7110391

 

7110411

 

7110491

 

7112100

 

7112200

 

7112900

 

7118100

 

7118101

 

7118109

 

7118900

 

7118901

 

7118902

 

7118909

 

7201400

 

7202410

 

7202490

 

7202500

 

7202600

 

7202700

 

7202800

 

7202910

 

7202920

 

7202930

 

7202999

 

7203100

 

7203900

 

7204100

 

7204210

 

7204290

 

7204300

 

7204410

 

7204490

 

7205210

 

7205290

 

7206901

 

7210111

 

7210121

 

7210901

 

7212101

 

7218100

 

7218900

 

7219110

 

7219120

 

7219130

 

7219140

 

7219210

 

7219220

 

7219230

 

7219240

 

7219310

 

7219320

 

7219330

 

7219340

 

7219350

 

7219900

 

7220110

 

7220120

 

7220200

 

7220900

 

7223000

 

7225100

 

7226100

 

7226920

 

7302300

 

7302400

 

7317002

 

7401100

 

7401200

 

7402000

 

7403110

 

7403120

 

7403130

 

7403190

 

7403210

 

7403220

 

7403230

 

7403290

 

7404000

 

7405100

 

7405900

 

7406100

 

7406200

 

7407101

 

7407221

 

7407291

 

7410211

 

7410221

 

7501100

 

7501200

 

7502100

 

7502200

 

7503000

 

7508001

 

7606111

 

7606121

 

7606911

 

7606921

 

7607111

 

7607191

 

7607201

 

7801100

 

7801910

 

7801990

 

7802000

 

7901110

 

7901120

 

7901200

 

7902000

 

8001100

 

8001200

 

8002000

 

8101100

 

8101910

 

8101920

 

8101931

 

8101939

 

8101990

 

8102100

 

8102910

 

8102920

 

8102930

 

8102990

 

8103100

 

8103900

 

8104110

 

8104190

 

8104200

 

8104300

 

8104900

 

8105101

 

8105109

 

8105900

 

8106001

 

8106009

 

8107101

 

8107102

 

8107900

 

8108101

 

8108102

 

8108900

 

8109101

 

8109102

 

8109900

 

8110001

 

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8111009

 

8112111

 

8112112

 

8112190

 

8112201

 

8112209

 

8112301

 

8112309

 

8112401

 

8112409

 

8112911

 

8112919

 

8112990

 

8113001

 

8113009

 

8201100

 

8201200

 

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8201500

 

8201600

 

8201900

 

8202100

 

8202200

 

8202310

 

8202320

 

8202400

 

8202910

 

8202990

 

8203100

 

8203200

 

8203300

 

8203400

 

8204110

 

8204120

 

8204200

 

8205600

 

8206000

 

8207110

 

8207120

 

8207200

 

8207300

 

8207400

 

8207500

 

8207600

 

8207700

 

8207800

 

8207900

 

8208100

 

8208200

 

8208300

 

8208400

 

8208900

 

8209000

 

8303000

 

8308902

 

8401100

 

8401200

 

8401300

 

8401400

 

8402111

 

8402119

 

8402129

 

8402192

 

8402199

 

8402202

 

8402209

 

8402902

 

8402909

 

8403100

 

8403900

 

8404101

 

8404109

 

8404202

 

8404209

 

8404901

 

8404909

 

8405900

 

8406110

 

8406190

 

8406900

 

8407100

 

8407290

 

8407310

 

8407320

 

8407331

 

8407332

 

8407333

 

8407341

 

8407342

 

8407343

 

8408109

 

8408209

 

8408909

 

8409100

 

8410110

 

8410120

 

8410130

 

8410900

 

8411110

 

8411120

 

8411210

 

8411220

 

8411810

 

8411820

 

8411910

 

8411990

 

8412100

 

8412210

 

8412290

 

8412310

 

8412390

 

8412801

 

8412809

 

8412901

 

8412909

 

8413200

 

8413400

 

8413500

 

8413600

 

8413709

 

8413812

 

8413819

 

8413820

 

8413919

 

8413920

 

8414100

 

8414200

 

8414309

 

8414400

 

8414599

 

8414809

 

8416100

 

8416200

 

8416300

 

8416900

 

8417100

 

8417200

 

8417800

 

8417901

 

8417909

 

8418501

 

8418611

 

8418691

 

8419200

 

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8501320