52000PC0324(02)

Proposal for a COUNCIL DECISION concerning the conclusion of the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

General

(1) By means of a decision of 29 June 1998, the Council authorised the Commission to open negotiations with the ACP States with a view to concluding a Partnership Agreement to succeed to the Lomé Convention, and approved negotiating directives to that end.

(2) The negotiations took place between 30 September 1998 and 3 February 2000.

(3) The Commission considers that the Agreement conforms to the negotiating directives adopted by the Council on 29 June 1998.

(4) The new Agreement marks a fundamental reform of the relationship between the ACP States and the Community and its Member States, building on the acquis of the previous successive Lomé Conventions.

(5) The Agreement is to be concluded for a twenty year-period, with a possibility for a revision every five years, and a financial protocol for each five-year period. Some components of the Agreement such as implementation procedures for financial support or sectoral policy guidelines will be reviewed and adapted, if necessary, by the ACP-EC Council of Ministers, which as a rule will meet once a year. This new approach should allow for more flexibility and give the opportunity to adapt the co-operation system to changing realities.

(6) As regards trade arrangements, a specific timetable has been agreed as indicated below (point 13).

(7) The new Agreement combines politics, trade and development. It is based on five interdependent pillars:

- a comprehensive political dimension,

- the promotion of participatory approaches,

- a strengthened focus on the objective of poverty reduction,

- the setting up of a new framework for economic and trade co-operation,

- and a reform of financial co-operation.

(8) The Agreement contains provisions for an enhanced political dialogue between the parties. The respect for human rights, democratic principles and the rule of law are essential elements of the partnership. A consultation procedure has been drawn up for cases of violation of these essential elements. In cases of special urgency appropriate measures may be taken without prior consultation.

(9) The Agreement also contains a commitment to good governance as a fundamental element of the partnership, and a consultation procedure in serious cases of corruption.

(10) The Agreement contains innovative provisions to promote participatory approaches with a view to ensuring the involvement of civil society and economic and social players by

- providing them with adequate information on the ACP-EU Partnership Agreement, in particular within the ACP countries,

- ensuring the consultation of civil society on the economic, social and institutional reforms and policies to be supported by EU,

- facilitating non-State actors' involvement in the implementation of programmes and projects,

- providing non-State actors with adequate support for capacity building, and

- encouraging networking and links between ACP and EU actors.

(11) Poverty reduction is the central objective of the new partnership as formulated in the general provisions of the Agreement and in the provisions which will guide Development strategies. Co-operation strategies will reflect international commitments including conclusions of UN conferences, international development targets, in particular the OECD DAC strategy.

(12) The EU and the ACP States have agreed on a process to establish new trading arrangements that will pursue trade liberalisation between the parties and formulate provisions in trade-related matters. The objectives of economic and trade co-operation are:

- To promote smooth and gradual integration of ACP economies into the world economy

- To enhance production , supply and trading capacities

- To create new trade dynamics and foster investment

- To ensure full conformity with WTO provisions

(13) The negotiations on economic partnership agreements will start by September 2002 at the latest. The present regime will be maintained during the preparatory period (2000 - 2008 at the latest).

(14) The Agreement contains provisions for co-operation in the trade-related areas.

(15) Development Finance co-operation will be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the ACP States, at both national and regional levels. It will be based on the following principles:

(a) promote local ownership at all levels of the development process;

(b) reflect a partnership based on mutual rights and obligations;

(c) emphasise the importance of predictability and security in resource flows, granted on highly concessional terms and on a continuous basis;

(d) be flexible and appropriate to the situation in each ACP State as well as adapted to the specific nature of the project or programme concerned;

(e) ensure efficiency, co-ordination and consistency.

(16) The instruments have been regrouped and rationalised. The totality of EDF resources available will be channelled through two instruments - one envelope for providing grants and one for providing risk capital and loans to the private sector.

The proposal

(17) For the reasons above the Commission considers that this Agreement should be concluded on behalf of the Community. Therefore the Commission proposes that the Council approves the text of the Agreement and adopts the proposals in the Annex. Since the Agreement is a mixed Agreement it will also have to be ratified by the Member States according to their constitutional provisions.

(18) The Commission considers that a favourable answer must be given to the request from six countries in the Pacific to become members of the ACP-EC Partnership Agreement. These countries (Federated States of Micronesia, Republic of Marshall Islands, Palau, Nauru, Cook Islands and Niue) should thus be added to the list of signatory States in the Final Act.

(19) The proposal concerning the signing authorises the President of the Council to designate the person empowered to sign the Agreement on behalf of the Community.

(20) The proposal concerning the conclusion authorises the President of the Council to designate the person empowered to deposit the instrument of approval on behalf of the European Community. Article 3 of this proposal refers to the procedure to be applied in case of violation of one of the essential elements or in serious cases of corruption. It maintains the provisions of the Council decision 1999/214/EC (OJ L 75, 20.3.1999). The European Parliament will be asked to give its assent to the conclusion of the Agreement.

2000/0124 (AVC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular its Article 310 in connection with the second phrase of article 300 (2) and the second subparagraph of paragraph 3,

Having regard to the proposal from the Commission,

Having regard to the assent of the European Parliament,

Whereas

(1) pursuant to Article 96 of the Partnership Agreement the party which considers that another party has failed to fulfil an obligation in respect of one of the essential elements referred to in Article 9 may invite the other party to hold consultations and, in certain circumstances, take appropriate measures, including where necessary, the partial or full suspension of application of the Partnership Agreement to the party concerned;

(2) pursuant to Article 97 of the Partnership agreement the party which considers that a serious case of corruption has occurred may invite the other party to hold consultations and, in certain circumstances, take appropriate measures, including where necessary, the partial or full suspension of application of the Partnership agreement to the party concerned;

(3) an effective procedure should be adopted when it is intended to take appropriate measures under Article 96 or Article 97 of the Partnership Agreement,

(4) the position of the Community on request for derogations from the rules of origin set out in Protocol No 1 to the ACP_EC Partnership Agreement is established by the Commission in accordance with the provisions of Council decision No.......of....";.

(5) the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part, signed in ..... on ......... should be approved.

HAS DECIDED AS FOLLOWS:

Article 1

The Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part, together with the Annexes and Protocols attached thereto and the declarations made by the Community unilaterally or jointly with other parties that are attached to the Final Act are hereby approved on behalf of the European Community.

The texts of the Agreement, Annexes, Protocols and the Final Act are attached to this Decision.

Article 2

The President of the Council shall be authorised to designate the person empowered to deposit the instrument of approval as required by Article 93 (2) of the Agreement on behalf of the European Community.

Article 3

1. Where, at the initiative of the Commission or a Member State, the Council considers that an ACP State has failed to fulfil an obligation concerning one of the essential elements referred to in Article 9 of the Partnership agreement, or in serious cases of corruption, the ACP State concerned shall be invited unless there is special urgency to hold consultations in accordance with Articles 96 and 97 of the Partnership Agreement.

The Council shall act by a qualified majority.

In the consultations, the Community shall be represented by the Presidency of the Council and the Commission.

2. If, on expiry of the deadlines set in Articles 96 and 97 for the consultations and despite all efforts, no solution has been found, or immediately in a case of urgency or refusal to hold consultations, the Council may, pursuant to those Articles, decide, on a proposal from the Commission, to take appropriate measures including partial suspension acting by a qualified majority.

The Council shall act unanimously in case of a full suspension of application of the Partnership Agreement in relation to the ACP State concerned.

These measures shall remain in force until such time as the Council has used the applicable procedure as set out in the first subparagraph to take a decision amending or revoking the measures adopted previously, or where applicable, for the period indicated in the Decision.

For that purpose the Council shall proceed to review regularly and at least every six months the above measures.

The President of the Council shall notify the measures thus adopted to the ACP State concerned and to the Council of Ministers before they enter into force.

The Council's Decision shall be published in the Official Journal of the European Communities. Where the measures are adopted immediately, notification thereof shall be addressed to the ACP State and to the Council of Ministers at the same time as an invitation to hold consultations.

3. The European Parliament shall be immediately and fully informed on any decision taken under Paragraphs 1 and 2.

Article 4

This Decision shall be published in the Official Journal of the European Communities.

Done at Brussels,

For the Council

The President

PARTNERSHIP AGREEMENT BETWEEN THE AFRICAN CARIBBEAN AND PACIFIC STATES AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES

TABLE OF CONTENTS

PREAMBLE 11

PART 1 : GENERAL PROVISIONS 13

Title I - Objectives, principles and actors 13

Chapter 1 : Objectives and principles 13

Chapter 2 : The actors of the partnership 15

Title II - The political dimension 17

PART 2 : INSTITUTIONAL PROVISIONS 23

PART 3 : CO-OPERATION STRATEGIES 26

Title I - Development strategies 26

Chapter 1 : General framework 26

Chapter 2 : Areas of support 28

Section 1 : Economic development 28

Section 2 : Social and human development : 32

Section 3 : Regional Co-operation & integration 34

Section 4 : Thematic and cross-cutting issues 36

Title II - Economic and trade Co-operation 39

Chapter 1 : Objectives and principles 39

Chapter 2 : New trading arrangements 41

Chapter 3 : Co-operation in the international fora 43

Chapter 4 : Trade in Services 44

Chapter 5 : Trade-related areas 46

Chapter 6 : Co-operation in other areas 51

PART 4 : DEVELOPMENT FINANCE CO-OPERATION 52

Title I - General Provisions 52

Chapter 1 : Objectives, principles, guidelines and eligibility 52

Chapter 2 : Scope and Nature of Financing 55

Title II - Financial Co-operation 57

Chapter 1 : Financial resources 57

Chapter 2 : Debt and Structural Adjustment support 59

Chapter 3 : Support in cases of short-term fluctuations in export earnings 61

Chapter 4 : Support for sectoral policies 62

Chapter 5 : Microprojects and decentralised co-operation 63

Chapter 6 - Humanitarian and emergency assistance 64

Chapter 7 : Investment and private sector development support 66

Title III - Technical Co-operation 69

Title IV - Procedures and Management Systems 71

PART 5 : GENERAL PROVISIONS FOR THE LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP STATES 73

Chapter 1 : General provisions 73

Chapter 2 : Least-developed ACP States 74

Chapter 3 : Landlocked ACP States 74

Chapter 4 : Island ACP States 75

PART 6 : FINAL PROVISIONS 76

PREAMBLE

Having regard to the Treaty establishing the European Community, on the one hand, and the Georgetown Agreement establishing the Group of African, Caribbean and Pacific States, on the other;

Affirming their commitment to work together towards the achievement of the objectives of poverty eradication, sustainable development and the gradual integration of the ACP countries into the world economy;

Asserting their resolve to make, through their co-operation, a significant contribution to the economic, social and cultural development of the ACP States and to the greater well-being of their population, helping them facing the challenges of globalisation and strengthening the ACP-EU partnership in the effort to give the process of globalisation a stronger social dimension;

Reaffirming their willingness to revitalise their special relationship and to implement a comprehensive and integrated approach for a strengthened partnership based on political dialogue, development co-operation and economic and trade relations;

Acknowledging that a political environment guaranteeing peace, security and stability, respect for human rights, democratic principles and the rule of law, and good governance is part and parcel of long term development; acknowledging that responsibility for establishing such an environment rests primarily with the countries concerned;

Acknowledging that sound and sustainable economic policies are prerequisites for development;

Referring to the principles of the Charter of the United Nations, and recalling the Universal Declaration of Human Rights, the conclusions of the 1993 Vienna Conference on Human Rights, the Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights, the Convention on the Rights of the Child, the Convention on the Elimination of all forms of Discrimination against Women, the International Convention on the Elimination of all forms of Racial Discrimination, the 1949 Geneva Conventions and the other instruments of international humanitarian law, the 1954 Convention relating to the status of stateless persons, the 1951 Geneva Convention relating to the Status of Refugees, the 1967 New York Protocol relating to the Status of Refugees,

Considering the Convention for the Protection of Human Rights and Fundamental Freedoms of the Council of Europe, the African Charter on Human and Peoples' Rights and the American Convention on Human Rights as positive regional contributions to the respect of human rights in the European Union and in the ACP States;

Recalling the Libreville and Santo Domingo declarations of the Heads of State and Government of the ACP countries at their Summits in 1997 and 1999;

Considering that the development targets and principles agreed in United Nations Conferences and the target, set by the OECD Development Assistance Committee, to reduce by one half the proportion of people living in extreme poverty by the year 2015 provide a clear vision and must underpin ACP-EU co-operation within the Agreement;

Paying particular attention to the pledges made at the Rio, Vienna, Cairo, Copenhagen, Beijing, Istanbul and Rome UN conferences and acknowledging the need for further action to be taken in order to achieve the goals and implement the action programmes which have been drawn up in those fora;

Anxious to respect basic labour rights, taking account of the principles laid down in the relevant conventions of the International Labour Organisation;

Recalling the commitments within the framework of the World Trade Organisation;

have decided to conclude this Agreement:

PART 1 : GENERAL PROVISIONS

Title I - Objectives, principles and actors

Chapter 1 : Objectives and principles

Article 1 Objectives of the partnership

The Community and its Member States, of the one part, and the ACP States, of the other part, hereinafter referred to as the "Parties" hereby conclude this Agreement in order to promote and expedite the economic, cultural and social development of the ACP States, with a view to contributing to peace and security and to promoting a stable and democratic political environment.

The partnership shall be centred on the objective of reducing and eventually eradicating poverty consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy.

These objectives and the Parties' international commitments shall inform all development strategies and shall be tackled through an integrated approach taking account at the same time of the political, economic, social, cultural and environmental aspects of development. The partnership shall provide a coherent support framework for the development strategies adopted by each ACP State.

Sustained economic growth, developing the private sector, increasing employment and improving access to productive resources shall all be part of this framework. Support shall be given to the respect of the rights of the individual and meeting basic needs, the promotion of social development and the conditions for an equitable distribution of the fruits of growth. Regional and sub-regional integration processes which foster the integration of the ACP countries into the world economy in terms of trade and private investment shall be encouraged and supported. Building the capacity of the actors in development and improving the institutional framework necessary for social cohesion, for the functioning of a democratic society and market economy, and for the emergence of an active and organised civil society shall be integral to the approach. Systematic account shall be taken of the situation of women and gender issues in all areas - political, economic and social. The principles of sustainable management of natural resources and the environment shall be applied and integrated at every level of the partnership.

Article 2 Fundamental principles

ACP-EC co-operation, underpinned by a legally binding system and the existence of joint institutions, shall be exercised on the basis of the following fundamental principles :

- equality of the partners and ownership of the development strategies: for the purposes of implementing the objectives of the partnership, the ACP States shall determine the development strategies for their economies and societies in all sovereignty and with due regard for the essential elements described in Article 9; the partnership shall encourage ownership of the development strategies by the countries and populations concerned;

- participation: apart from central government as the main partner, the partnership shall be open to different kinds of other actors, in order to encourage the integration of all sections of society, including the private sector and civil society organisations, into the mainstream of political, economic and social life;

- the pivotal role of dialogue and the fulfilment of mutual obligations: the obligations assumed by the Parties in the framework of their dialogue shall be central to their partnership and co-operation relations;

- differentiation and regionalisation: co-operation arrangements and priorities shall vary according to a partner's level of development, its needs, its performance and its long-term development strategy. Particular emphasis shall be placed on the regional dimension. Special treatment shall be given to the least-developed countries. The vulnerability of landlocked and island countries shall be taken into account.

Article 3 Achievement of the Agreement's objectives

The contracting Parties shall, each as far as it is concerned in the framework of this Agreement, take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement and to facilitate the attainment of its objectives. They shall refrain from any measures liable to jeopardise these objectives.

Chapter 2 : The actors of the partnership

Article 4 General approach

The ACP States shall determine the development principles, strategies and models of their economies and societies in all sovereignty. They shall establish, with the Community, the co-operation programmes foreseen under this agreement. However, the parties recognise the complementary role of and potential for contributions by non-state actors to the development process. To this end, under the conditions laid down in this Agreement, non-state actors shall, where appropriate:

- be informed and involved in consultation on co-operation policies and strategies, on priorities for co-operation especially in areas that concern or directly affect them, and on the political dialogue;

- be provided with financial resources, under the conditions laid down in this Agreement in order to support local development processes;

- be involved in the implementation of co-operation project and programmes in areas that concern them or where these actors have a comparative advantage;

- be provided with capacity-building support in critical areas in order to reinforce the capabilities of these actors, particularly as regards organisation and representation, and the establishment of consultation mechanisms including channels of communication and dialogue, and to promote strategic alliances.

Article 5 Information

Co-operation will support operation to provide more information and create greater awareness of the basic features of ACP-EU partnership. Co-operation will also:

- encourage partnership and build links between ACP and EU actors;

- strengthen networking and exchange of expertise and experience among the actors.

Article 6. Definitions

1. The actors of co-operation will include:

(a) State (local, national and regional);

(b) Non-state:

- Private sector;

- Economic and social partners, including trade union organisations;

- Civil Society in all its forms according to national characteristics.

2. Recognition by the parties of non-governmental actors shall depend on the extent to which they address the needs of the population, on their specific competencies and whether they are organised and managed democratically and transparently.

Article 7 Capacity building

The contribution of civil society to development can be enhanced by strengthening community organisations and non-profit non-governmental organisations in all spheres of co-operation. This will require:

- Encouraging and supporting the creation and development of such organisations;

- Establishing arrangements for involving such organisations in the design, implementation and evaluation of development strategies and programmes.

Title II - The political dimension

Article 8 Political dialogue

1. The Parties shall regularly engage in a comprehensive, balanced and deep political dialogue leading to commitments on both sides.

2. The objective of this dialogue shall be to exchange information, to foster mutual understanding, and to facilitate the establishment of agreed priorities and shared agendas, in particular by recognising existing links between the different aspects of the relations between the Parties, and the various areas of co-operation as laid down in this Agreement. The dialogue shall facilitate consultations between the Parties within international forums. The objectives of the dialogue shall also include preventing situations arising in which one Party might deem it necessary to have recourse to the non-execution clause.

3. The dialogue shall cover all the aims and objectives laid down in the Agreement as well as all questions of common, general, regional or sub-regional interest. Through dialogue, the Parties shall contribute to peace, security and stability and promote a stable and democratic political environment. It shall encompass co-operation strategies as well as global and sectoral policies, including environment, gender, migration and questions related to the cultural heritage.

4. The dialogue shall focus, inter alia, on specific political issues of mutual concern or of general significance for the attainment of the objectives of the Agreement, such as the arms trade, excessive military expenditure, drugs and organised crime, or ethnic, religious or racial discrimination. The dialogue shall also encompass a regular assessment of the developments concerning the respect for human rights, democratic principles, the rule of law and good governance.

5. Broadly based policies to promote peace and to prevent, manage and resolve violent conflicts shall play a prominent role in this dialogue, as shall the need to take full account of the objective of peace and democratic stability in the definition of priority areas of co-operation.

6. The dialogue shall be conducted in a flexible manner. Dialogue shall be formal or informal according to the need, and conducted within and outside the institutional framework, in the appropriate format, and at the appropriate level including regional, sub-regional or national level.

7. Regional and sub-regional organisations as well as representatives of civil society organisations shall be associated to this dialogue.

Article 9 Essential Elements and Fundamental Element

1. Co-operation shall be directed towards sustainable development centred on the human person, who is the main protagonist and beneficiary of development; this entails respect for and promotion of all human rights.

Respect for all human rights and fundamental freedoms, including respect for fundamental social rights, democracy based on the rule of law and transparent and accountable governance are an integral part of sustainable development.

2. The parties refer to their international obligations and commitments concerning respect for human rights. They reiterate their deep attachment to human dignity and human rights, which are legitimate aspirations of individuals and peoples. Human rights are universal, indivisible and inter-related. The parties undertake to promote and protect all fundamental freedoms and human rights, be they civil and political, or economic, social and cultural. In this context, the parties reaffirm the equality of men and women.

The parties reaffirm that democratisation, development and the protection of fundamental freedoms and human rights are inter-related and mutually reinforcing. Democratic principles are universally recognised principles underpinning the organisation of the state to ensure the legitimacy of its authority, the legality of its actions reflected in its constitutional, legislative and regulatory system, and the existence of participatory mechanisms. On the basis of universally recognized principles, each country develops its democratic culture.

The structure of government and the prerogatives of the different powers shall be founded on rule of law, which shall entail in particular effective and accessible means of legal redress, an independent legal system guaranteeing equality before the law and an executive that is fully subject to the law.

Respect for human rights, democratic principles and the rule of law, which underpin the ACP-EU partnership, shall underpin the domestic and international policies of the parties and constitute the essential elements of this Agreement.

3. In the context of a political and institutional environment that upholds human rights, democratic principles and the rule of law, good governance is the transparent and accountable management of human, natural, economic and financial resources for the purposes of equitable and sustainable development. It entails clear decision-making procedures at the level of public authorities, transparent and accountable institutions, the primacy of law in the management and distribution of resources and capacity building for elaborating and implementing measures aiming in particular at preventing and combating corruption.

Good governance, which underpins the ACP-EU partnership, shall underpin the domestic and international policies of the parties and constitute a fundamental element of this Agreement. The parties agree that only serious cases of corruption, including acts of bribery leading to such corruption, as defined in article 97 constitute a violation of that element.

4. The partnership shall actively support the promotion of human rights, processes of democratisation, consolidation of the rule of law, and good governance.

These areas will be an important subject for the political dialogue. In the context of this dialogue, the parties shall attach particular importance to the changes underway and to the continuity of the progress achieved. This regular assessment shall take into account each country's economic, social, cultural and historical context.

These areas will also be a focus of support for development strategies. The Community shall provide support for political, institutional and legal reforms and for building the capacity of public and private actors and civil society in the framework of strategies agreed jointly between the State concerned and the Community.

Article 10 Other elements of the political environment

1. The Parties consider the following elements as contributing to the maintenance and consolidation of a stable and democratic political environment:

- sustainable and equitable development involving, inter alia, access to productive resources, essential services and justice;

- greater involvement of an active and organised civil society and the private sector.

2. The Parties recognise that the principles of the market economy, supported by transparent competition rules and sound economic and social policies, contribute to achieving the objectives of the partnership.

Article 11 Peace-building policies, conflict prevention and resolution

1. The Parties shall pursue an active, comprehensive and integrated policy of peace-building and conflict prevention and resolution within the framework of the Partnership. This policy shall be based on the principle of ownership. It shall in particular focus on building regional, sub-regional and national capacities, and on preventing violent conflicts at an early stage by addressing their root-causes in a targeted manner, and with an adequate combination of all available instruments.

2. The activities in the field of peace-building, conflict prevention and resolution shall in particular include support for balancing political, economic, social and cultural opportunities among all segments of society, for strengthening the democratic legitimacy and effectiveness of governance, for establishing effective mechanisms for the peaceful conciliation of group interests, for bridging dividing lines among different segments of society as well as support for an active and organised civil society.

3. Relevant activities shall also include, inter alia, support for mediation, negotiation and reconciliation efforts, for effective regional management of shared, scarce natural resources, for demobilisation and reintegration of former combatants into the society, for addressing the problem of child soldiers, as well as for suitable action to set responsible limits to military expenditures and the arms trade, including through support for the promotion and application of agreed standards and codes of conduct. In this context, particular emphasis shall be given to the fight against anti-personnel landmines as well as to addressing an excessive and uncontrolled spread, illegal trafficking and accumulation of small arms and light weapons.

4. In situations of violent conflict the Parties shall take all suitable action to prevent an intensification of violence, to limit its territorial spread, and to facilitate a peaceful settlement of the existing disputes. Particular attention shall be paid to ensuring that financial resources for co-operation are used in accordance with the principles and objectives of the Partnership, and to preventing a diversion of funds for belligerent purposes.

5. In post-conflict situations, the Parties shall take all suitable action to facilitate the return to a non-violent, stable and self-sustainable situation. The Parties shall ensure the creation of the necessary links between emergency measures, rehabilitation and development co-operation.

Article 12 Coherence of community policies and their impact on the implementation of the partnership Agreement

Without prejudice to Article 96, where the Community intends, in the exercise of its powers, to take a measure which might affect the interests of the ACP States, as far as this Agreement's objectives are concerned, it shall inform in good time the said States of its intentions. Towards this end, the Commission shall communicate simultaneously to the Secretariat of the ACP States its proposal for such measures. Where necessary, a request for information may also take place on the initiative of the ACP States.

At their request, consultations shall be held promptly so that account may be taken of their concerns as to the impact of those measures before any final decision is made.

After such consultations have taken place, the ACP States may, in addition, transmit their concerns in writing to the Community and submit suggestions for amendments indicating the way their concerns should be met.

If the Community does not accede to the ACP States' submissions, it shall advise them as soon as possible giving its reasons.

The ACP States shall also be provided with adequate information on the entry into force of such decisions, in advance whenever possible.

Article 13 Migration

1. The issue of migration shall be the subject of in-depth dialogue in the framework of the EU-ACP partnership.

The Parties reaffirm their existing obligations and commitments in international law to ensure respect for human rights and to eliminate all forms of discrimination based particularly on origin, sex, race, language and religion.

2. The Parties agree to consider that a partnership implies, with relation to migration, fair treatment of third country nationals who reside legally on their territories, integration policy aiming at granting them rights and obligations comparable to those of their citizens, enhancing non-discrimination in economic, social and cultural life and developing measures against racism and xenophobia.

3. The treatment accorded by each Member State to workers of ACP countries legally employed in its territory, shall be free from any discrimination based on nationality, as regards working conditions, remuneration and dismissal, relative to its own nationals. Further in this regard, each ACP State shall accord comparable non-discriminatory treatment to workers who are nationals of a Member State.

4. The Parties consider that strategies aiming at reducing poverty, improving living and working conditions, creating employment and developing training contribute in the long term to normalising migratory flows.

The parties will take account, in the framework of development strategies and national and regional programming, of structural constraints associated with migratory flows with the purpose of supporting the economic and social development of the regions from which migrants originate and of reducing poverty.

The Community shall support, through national and regional Co-operation programmes, the training of ACP nationals in their country of origin, in another ACP country or in a Member State of the European Union. As regards training in a Member State, the Parties shall ensure that such action is geared towards the vocational integration of ACP nationals in their countries of origin.

The Parties shall develop co-operation programmes to facilitate the access of students from ACP States to education, in particular through the use of new communication technologies.

5. (a) In the framework of the political dialogue the Council of Ministers shall examine issues arising from illegal immigration with a view to establishing, where appropriate, the means for a prevention policy.

(b) In this context the Parties agree in particular to ensure that the rights and dignity of individuals are respected in any procedure initiated to return illegal immigrants to their countries of origin. In this connection the authorities concerned shall extend to them the administrative facilities necessary for their return.

(c) The Parties further agree that:

(i) - each Member State of the European Union shall accept the return of and readmit any of its nationals who are illegally present on the territory of an ACP State, at that State's request and without further formalities;

- each of the ACP States shall accept the return of and readmit any of its nationals who are illegally present on the territory of a Member State of the European Union, at that Member State's request and without further formalities.

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

In respect of the Member States of the European Union, the obligations in this paragraph apply only in respect of those persons who are to be considered their nationals for the Community purposes in accordance with Declaration n°2 to the Treaty establishing the European Community. In respect of ACP States, the obligations in this paragraph apply only in respect of those persons who are considered as their nationals in accordance to their respective legal system.

(ii) At the request of a Party, negotiations shall be initiated with ACP States aiming at concluding in good faith and with due regard for the relevant rules of international law, bilateral agreements governing specific obligations for the readmission and return of their nationals. These agreements shall also cover, if deemed necessary by any of the Parties, arrangements for the readmission of third country nationals and stateless persons. Such agreements will lay down the details about the categories of persons covered by these arrangements as well as the modalities of their readmission and return.

Adequate assistance to implement these agreements will be provided to the ACP States.

(iii) For the purposes of this article, the term " Parties" shall refer to the Community, any of its Member States and any ACP State.

PART 2 : INSTITUTIONAL PROVISIONS

Article 14 The joint institutions

The institutions of this Agreement are the Council of Ministers, the Committee of Ambassadors and the Joint Parliamentary Assembly.

Article 15 The Council of Ministers

1. The Council of Ministers shall comprise, on the one hand, the members of the Council of the EU and members of the Commission of the European Communities and, on the other, a member of the government of each ACP State.

The office of the President of the Council of Ministers shall be held alternately by a member of the Council of the European Union and a member of the government of an ACP State.

The Council shall meet as a rule once a year and whenever it seems necessary, in a form and a geographical composition appropriate to the issues to be addressed.

2. The functions of the Council of Ministers shall be to:

(a) conduct the political dialogue;

(b) adopt the policy guidelines and take the decisions necessary for the implementation of the provisions of this Agreement, in particular as regards development strategies in the specific areas provided for by this Agreement or any other area that should prove relevant, and as regards procedures;

(c) examine and resolve any issue liable to impede the effective and efficient implementation of this Agreement or present an obstacle to achieving its objectives;

(d) ensure the smooth functioning of the consultation mechanisms.

3. The Council of Ministers shall take its decisions by common agreement of the Parties. The proceedings of the Council of Ministers shall be valid only if half the members of the Council of the European Union, one member of the Commission and two-thirds of the members representing the governments of the ACP States are present. Any member of the Council of Ministers unable to attend may be represented. The representative shall exercise all the rights of that member.

It may take decisions that are binding on the Parties and frame resolutions, recommendations and opinions. It shall examine and take into consideration resolutions and recommendations adopted by the Joint Parliamentary Assembly.

The Council of Ministers shall conduct an ongoing dialogue with the representatives of the social and economic partners and other actors of civil society in the ACP and the EU. To that end, consultations may be held alongside its meetings.

4. The Council of Ministers may delegate powers to the Committee of Ambassadors.

5. The Council of Ministers shall adopt its rules of procedure within six months of the entry into force of this Agreement.

Article 16 The Committee of Ambassadors

1. The Committee of Ambassadors shall comprise, on the one hand, the permanent representative of each Member State to the EU and a representative of the Commission and, on the other, the head of mission of each ACP state to the EU.

The office of Chairman of the Committee of Ambassadors shall be held alternately by a Permanent Representative of a Member State designated by the Community, and a head of mission representing an ACP State, designated by the ACP States.

2. The Committee shall assist the Council of Ministers in the fulfilment of its tasks and carry out any mandate entrusted to it by the Council. In this context, it shall monitor implementation of this Agreement and progress towards achieving the objectives set therein.

The Committee of Ambassadors shall meet regularly, in particular to prepare the Council sessions and whenever it proves necessary.

3. The Committee shall adopt its rules of procedure within six months of the entry into force of this Agreement.

Article 17 The Joint Parliamentary Assembly

1. The Joint Parliamentary Assembly shall be composed of equal numbers of EU and ACP representatives. The members of the Joint Parliamentary Assembly shall be, on the one hand, members of the European Parliament and, on the other, members of parliament or, failing this, representatives designated by the parliament of each ACP state. In the absence of a parliament, the attendance of a representative from the ACP state concerned shall be subject to the prior approval of the Joint Parliamentary Assembly.

2. The role of the Joint Parliamentary Assembly, as a consultative body, shall be to:

- promote democratic processes through dialogue and consultation;

- facilitate greater understanding between the peoples of the European Union and those of the ACP States and raise public awareness of development issues;

- discuss issues pertaining to development and the ACP-EU partnership;

- adopt resolutions and make recommendations to the Council of Ministers with a view to achieving the objectives of this Agreement.

3. The Joint Parliamentary Assembly shall meet twice a year in plenary session, alternately in the European Union and in an ACP state. With a view to strengthening regional integration and fostering co-operation between national parliaments, meetings between EU and ACP members of parliament may be arranged at regional or subregional level.

The Joint Parliamentary Assembly shall organise regular contacts with representatives of the ACP-EU economic and social partners and the other actors of civil society in order to obtain their views on the attainment of the objectives of this Agreement.

4. The Joint Parliamentary Assembly shall adopt its rules of procedure within six months of the entry into force of this Agreement.

PART 3 : CO-OPERATION STRATEGIES

Article 18

The co-operation strategies shall be based on development strategies and economic and trade co-operation which are interlinked and complementary.The parties shall ensure that the efforts undertaken in both afore-mentioned areas are mutually reinforcing.

Title I - Development strategies

Chapter 1 : General framework

Article 19 Principles and objectives

1. The central objective of ACP-EU co-operation is poverty reduction and ultimately its eradication; sustainable development; and progressive integration of the ACP countries into the world economy. In this context, co-operation framework and orientations shall be tailored to the individual circumstances of each ACP country, shall promote local ownership of economic and social reforms and the integration of the private sector and civil society actors into the development process.

2. Co-operation shall refer to the conclusions of United Nations Conferences and to the objectives, targets and action programmes agreed at international level and to their follow up as a basis for development principles. Co-operation shall also refer to the international development co-operation targets and shall pay particular attention to putting in place qualitative and quantitative indicators of progress.

3. Governments and non-state actors in each ACP country shall initiate consultations on country development strategies and community support thereto.

Article 20 The Approach

1. The objectives of ACP-EU development co-operation shall be pursued through integrated strategies that incorporate economic, social, cultural, environmental and institutional elements that must be locally owned. Co-operation shall thus provide a coherent enabling framework of support to ACP's own development strategies, ensuring complementarity and interaction between the various elements. In this context and within the framework of development policies and reforms pursued by the ACP States, ACP-EU co-operation strategies shall aim at :

(a) achieving rapid and sustained job-creating economic growth, developing the private sector, increasing employment, improving access to productive economic activities and resource, and fostering regional Co-operation and integration;

(b) promoting human and social development helping to ensure that the fruits of growth are widely and equitably shared and promoting gender equality ;

(c) promoting cultural values of communities and specific interactions with economic, political and social elements;

(d) promoting institutional reforms and development, strengthening the institutions necessary for the consolidation of democracy, good governance and for efficient and competitive market economies; and building capacity for development and partnership; and

(e) promoting environmental sustainability, regeneration and best practices, and the preservation of natural resource base.

2. Systematic account shall be taken in mainstreaming into all areas of co-operation the following thematic or cross-cutting themes : gender issues, environmental issues and institutional development and capacity building. These areas shall also be eligible for Community support.

3. The detailed texts as regards development co-operation objectives and strategies, in particular sectoral policies and strategies shall be incorporated in a compendium providing operational guidelines in specific areas or sectors of co-operation. These texts may be revised, reviewed and/or amended by the Council of Ministers on the basis of a recommendation from the ACP-EC Development Finance Co-operation Committee.

Chapter 2 : Areas of support

Section 1 : Economic development

Article 21 Investment and private sector development

1. Co-operation shall support the necessary economic and institutional reforms and policies at national and/or regional level, aiming at creating a favourable environment for private investment, and the development of a dynamic, viable and competitive private sector. Co-operation shall further support:

(a) the promotion of public-private sector dialogue and co-operation;

(b) the development of entrepreneurial skills and business culture;

(c) privatization and enterprise reform; and

(d) development and modernization of mediation and arbitration systems.

2. Co-operation shall also support improving the quality, availability and accessibility of financial and non-financial services to private enterprises, both formal and informal; by:

(a) catalysing and leveraging flows of private savings, both domestic and foreign, into the financing of private enterprises by supporting policies for developing modern financial sector including capital market, financial institutions and sustainable microfinance operations;

(b) the development and strengthening of business institutions and intermediary organisations, associations, chambers of commerce and local providers from the private sector supporting and providing non-financial services to enterprises such as professional, technical, management, training and commercial support services; and

(c) supporting institutions, programmes, activities and initiatives that contribute to the development and transfer of technologies and know-how and best practices on all aspects of business management.

3. Co-operation shall promote business development through the provision of finance, guarantee facilities and technical support aimed at encouraging and supporting the creation, establishment, expansion, diversification, rehabilitation, restructuring, modernization or privatization of dynamic, viable and competitive enterprises in all economic sectors as well as financial intermediaries such as development finance and venture capital institutions, and leasing companies by:

(a) creating and/or strengthening financial instruments in the form of investment capital;

(b) improving access to essential inputs such as business information and advisory, consultancy or technical assistance services;

(c) enhancement of export activities, in particular through capacity building in all trade-related areas; and

(d) encouraging inter-firm linkages, networks and co-operation including those involving the transfer of technology and know-how at national, regional and ACP-EU levels, and partnerships with private foreign investors which are consistent with the objectives and guidelines of ACP-EC Development co-operation.

4. Co-operation shall support microenterprise development through better access to financial and non-financial services; an appropriate policy and regulatory framework for their development; and provide training and information services on best practices in microfinance.

5. Support for investment and private sector development shall integrate actions and initiatives at macro, meso and micro economic levels.

Article 22 Macroeconomic and structural reforms and policies

1. Co-operation shall support ACP efforts to implement :

(a) macroeconomic, growth and stabilisation through disciplined fiscal and monetary policies that result in the reduction of inflation, and improve external and fiscal balances; in strengthening fiscal discipline, enhancing budgetary transparency and efficiency, improving the quality, the equity and composition of fiscal policy; and

(b) structural policies designed to reinforce the role of the different actors, especially the private sector and improve the environment for increases in business, investment and employment;

i. liberalise trade and foreign exchange regimes and current account convertibility, having regard to the particular circumstances of each country;

ii. strengthen labour and product-market reforms;

iii. encourage financial systems reforms which help to develop viable banking and non-banking systems, capital markets and financial services, including micro-finance;

iv. improve the quality of private and public services; and

v. encourage regional co-operation and progressive integration into macroeconomic and monetary policy.

2. The design of macroeconomic policies and structural adjustment programmes shall reflect the socio-political background and institutional capacity of the countries concerned, ensure a positive impact on poverty reduction and social services access and shall be based on the following principles :

(a) the ACP states shall bear primary responsibility for the analysis of the problems to be solved, the design and the implementation of the reforms;

(b) support programmes shall be adapted to the different situation in each ACP State and be sensitive to the social conditions, culture and environment of these States;

(c) the right of the ACP States to determine the direction and the sequencing of their development strategies and priorities shall be recognised and respected;

(d) the pace of reforms shall be realistic and compatible with each ACP States capacities and resources; and

(e) strengthening the communication and the information of populations on economic and social reforms and policies.

Article 23 Economic sector development

Co-operation shall support sustainable policy and institutional reforms and the investments necessary for equitable access to economic activities and productive resources, particularly:

(a) the development of training systems that help increase productivity in both the formal and the informal sectors;

(b) capital, credit, land, especially as regards property rights and use;

(c) development of rural strategies aimed at establishing a framework for participatory decentralized planning, resource allocation and management;

(d) agricultural production strategies, national and regional food security policies, sustainable development of water resources and fisheries as well as marine resources within the economic exclusive zones of the ACP States. Any fishery agreement that may be negotiated between the Community and the ACP States shall pay due consideration to consistency with the development strategies in this area;

(e) economic and technological infrastructure and services, including transport, telecommunication systems, communication services and the development of information society;

(f) development of competitive industrial, mining and energy sectors, while encouraging private sector involvement and development;

(g) trade development, including the promotion of fair trade;

(h) development of business, finance and banking; and other service sectors ;

(i) tourism development; and

(j) development of scientific, technological and research infrastructure and services; including the enhancement, transfer and absorption of new technologies;

(k) The strengthening of capacities in productive areas, especially in public and private sectors.

Article 24 Tourism

Co-operation will aim at the sustainable development of the tourism industry in ACP countries and sub-regions, recognising its increasing importance to the growth of the services sector in ACP countries and to the expansion of their global trade, its ability to stimulate other sectors of economic activity, and the role it can play in poverty eradication.

Co-operation programmes and projects will support the efforts of ACP countries to establish and improve the countries legal and institutional framework and resources for the development and implementation of sustainable tourism policies and programmes, as well as inter alia, improving the competitive position of the sector, especially SMEs, investment support and promotion, product development including the development of indigenous cultures in ACP countries, and strengthening linkages between tourism and other sectors of economic activity.

Section 2 : Social and human development :

Article 25 Social sector development

1. Co-operation shall support ACP States' efforts at developing general and sectoral policies and reforms which improve the coverage, quality of and access to basic social infrastructure and services and take account of local needs and specific demands of the most vulnerable and disadvantaged, thus reducing the inequalities of access to these services. Special attention shall be paid to ensuring adequate levels of public spending in the social sectors. In this context, co-operation shall aim at :

(a) improving education and training, and building technical capacity and skills;

(b) improving health systems and nutrition, eliminating hunger and malnutrition, ensuring adequate food supply and security;

(c) integrating population issues into development strategies in order to improve reproductive health, primary health care, family planning; and prevention of female genital mutilation;

(d) promoting the fight against HIV/AIDS;

(e) increasing the security of household water and improving access to safe water and adequate sanitation;

(f) improving the availability of affordable and adequate shelter for all through supporting low-cost and low-income housing programs and improving urban development; and

(g) encouraging the promotion of participatory methods of social dialogue as well as respect for basic social rights.

2. Co-operation shall also support capacity-building in social areas such as programmes for training in the design of social policies and modern methods for managing social projects and programmes; policies conducive to technological innovation and research; building local expertise and promoting partnerships; and round-table discussions at national and/or regional level.

3. Co-operation shall promote and support the development and implementation of policies and of systems of social protection and security in order to enhance social cohesion and to promote self-help and community solidarity. The focus of the support shall, inter-alia, be on developing initiatives based on economic solidarity, particularly by setting-up social development funds adapted to local needs and actors.

Article 26 Youth issues

Co-operation shall also support the establishment of a coherent and comprehensive policy for realising the potential of youth so that they are better integrated into society to achieve their full potential. In this context, co-operation shall support policies, measures and operations aimed at :

(a) protecting the rights of children and youth, especially the girl child;

(b) promoting the skills, energy, innovation and potential of youth in order to enhance their economic, social and cultural opportunities and enlarge their employment opportunities in the productive sector;

(c) helping community-based institutions to give children the opportunity to develop their physical, psychological, social and economic potential; and

(d) reintegrating into society children in post-conflicts situations through rehabilitation programmes.

Article 27 Cultural development

Co-operation in the area of culture shall aim at:

(a) integrating the cultural dimension at all levels of development co-operation;

(b) recognizing, preserving and promoting cultural values and identities to enable inter-cultural dialogue;

(c) recognising, preserving and promoting the value of cultural heritage; supporting the development of capacity in this sector; and

(d) developing cultural industries and enhancing market access opportunities for cultural goods and services.

Section 3 : Regional Co-operation & integration

Article 28 General approach

Co-operation shall provide effective assistance to achieve the objectives and priorities which the ACP States have set themselves in the context of regional and sub-regional co-operation and integration, including inter-regional and intra-ACP co-operation. Regional Co-operation can also involve OCTs and outermost regions. In this context, co-operation support shall aim to:

(a) foster the gradual integration of the ACP States into the world economy;

(b) accelerate economic co-operation and development both within and between the regions of the ACP States;

(c) promote the free movement of persons, goods, services, capital, labour and technology among ACP countries;

(d) accelerate diversification of the economies of the ACP States; and -co-ordination and harmonization of regional and sub-regional co-operation policies; and

(e) promote and expand inter and intra-ACP trade and with third countries.

Article 29 Regional economic integration

Co-operation shall, in the area of regional economic integration, support:

(a) developing and strengthening the capacities of:

i. regional integration institutions and organizations set up by the ACP States to promote regional co-operation and integration, and

ii. national governments and parliaments in matters of regional integration;

(b) fostering participation of LDC ACP States in the establishment of regional markets and sharing the benefits therefrom;

(c) implementation of sectoral reform policies at regional level;

(d) liberalisation of trade and payments;

(e) promoting cross-border investments both foreign and domestic, and other regional or sub-regional economic integration initiatives; and

(f) taking account of the net transitional costs of regional integration on budget revenue and balance of payments.

Article 30 Regional Co-operation

1. Co-operation shall, in the area of regional co-operation support a wide variety of functional and thematic fields which specifically address common problems and take advantage of scale of economies, including:

(a) infrastructure particularly transport and communications and safety thereof and services, including the development of regional opportunities in the area of Information and Communication Technologies (ICT);

(b) the environment; water resource management and energy;

(c) health, education and training;

(d) research and technological development;

(e) regional initiatives for disaster preparedness and mitigation; and

(f) other areas, including arms control, action against drugs, organized crimes, money laundering, bribery and corruption.

2. Co-operation shalll also support inter and intra-ACP co-operation schemes and initiatives.

3. Co-operation shall help promote and develop a regional political dialogue in areas of conflict prevention and resolution; human rights and democratization; exchange, networking, and promotion of mobility between the different actors of development, in particular in civil society.

1.1.1.1.

Section 4 : Thematic and cross-cutting issues

Article 31 Gender issues

Co-operation shall help strengthen policies and programmes that improve, ensure and broaden the equal participation of men and women in all spheres of political, economic, social and cultural life. Co-operation shall help improve the access of women to all resources required for the full exercise of their fundamental rights. More specifically, co-operation shall create the appropriate framework to:

(a) integrate a gender-sensitive approach and concerns at every level of development Co-operation including macroeconomic policies, strategies and operations; and

(b) encourage the adoption of specific positive measures in favour of women such as:

i. participation in national and local politics;

ii. support for women's organisations;

iii. access to basic social services, especially to education and training, health care and family planning;

iv. access to productive resources, especially to land and credit and to labour market; and

v. taking specific account of women in emergency aid and rehabilitation operations.

Article 32 Environment and natural resources

1. Co-operation on environmental protection and sustainable utilisation and management of natural resources shall aim at :

(a) mainstreaming environmental sustainability into all aspects of development co-operation and support programmes and projects implemented by the various actors;

(b) building and/or strengthening the scientific and technical human and institutional capacity for environmental management for all environmental stakeholders;

(c) supporting specific measures and schemes aimed at addressing critical sustainable management issues and also relating to current and future regional and international commitments concerning mineral and natural resources such as:

i. tropical forests, water resources, coastal, marine and fisheries resources, wildlife, soils, biodiversity;

ii. protection of fragile ecosystems (e.g. coral reef);

iii. renewable energy sources notably solar energy and energy efficiency;

iv. sustainable rural and urban development;

v. desertification, drought and deforestation;

vi. developing innovative solutions to urban environmental problems; and

vii. promotion of sustainable tourism.

(d) Taking into account issues relating to the transport and disposal of hazardous waste.

2. Co-operation shall also take account of :

(a) the vulnerability of small island ACP countries, especially to the threat posed by climate change;

(b) the worsening drought and desertification problems especially of least developed and land-locked countries; and

(c) institutional development and capacity building

Article 33 Institutional development and capacity building

1. Co-operation shall pay systematic attention to institutional aspects and in this context, shall support the efforts of the ACP States to develop and strengthen structures, institutions and procedures that help to:

(a) promote and sustain democracy, human dignity, social justice and pluralism, with full respect for diversity within and among societies;

(b) promote and sustain universal and full respect for and observance and protection of all human rights and fundamental freedoms;

(c) develop and strengthen the rule of law; and improve access to justice, while guaranteeing the professionalism and independence of the judicial systems; and

(d) ensure transparent and accountable governance and administration in all public institutions.

2. The Parties shall work together in the fight against bribery and corruption in all their societies.

3. Co-operation shall support ACP States' efforts to develop their public institutions into a positive force for growth and development and to achieve major improvements in the efficiency of government services as they affect the lives of ordinary people. In this context, co-operation shall assist the reform, rationalization and the modernization of the public sector. Specifically, co-operation support shall focus on:

(a) the reform and modernization of the civil service;

(b) legal and judicial reforms and modernisation of justice systems;

(c) improvement and strengthening of public finance management;

(d) accelerating reforms of the banking and financial sector;

(e) improvement of the management of public assets and reform of public procurement procedures; and

(f) political, administrative, economic and financial decentralization.

4. Co-operation shall also assist to restore and/or enhance critical public sector capacity and to support institutions needed to underpin a market economy, especially support for:

(a) developing legal and regulatory capabilities needed to cope with the operation of a market economy, including competition policy and consumer policy;

(b) improving capacity to analyse, plan, formulate and implement policies, in particular in the economic, social, environmental, research, science and technology and innovation fields;

(c) modernising, strengthening and reforming financial and monetary institutions and improving procedures;

(d) building the capacity at the local and municipal levels which is required to implement decentralization policy and to increase the participation of the population in the development process; and

(e) developing capacity in other critical areas such as:

i. international negotiations; and

ii. management and co-ordination of external aid.

5. Co-operation shall span all areas and sectors of co-operation to foster the emergence of non-state actors and the development of their capacities; and to strengthen structures for information, dialogue and consultation between them and the national authorities, including at regional level.

Title II - Economic and trade Co-operation

Chapter 1 : Objectives and principles

Article 34 Objectives

1. Economic and trade co-operation shall aim at fostering the smooth and gradual integration of the ACP States into the world economy, with due regard for their political choices and development priorities, thereby promoting their sustainable development and contributing to poverty eradication in the ACP countries.

2. The ultimate objective of economic and trade co-operation is to enable the ACP States to play a full part in international trade. In this context, particular regard shall be had to the need for the ACP States to participate actively in multilateral trade negotiations. Given the current level of development of the ACP countries, economic and trade co-operation shall be directed at enabling the ACP States to manage the challenges of globalisation and to adapt progressively to new conditions of international trade thereby facilitating their transition to the liberalised global economy.

3. To this end economic and trade co-operation shall aim at enhancing the production, supply and trading capacity of the ACP countries as well as their capacity to attract investment. It shall further aim at creating a new trading dynamic between the parties, at strengthening the ACP countries trade and investment policies and at improving the ACP countries' capacity to handle all issues related to trade.

4. Economic and trade co-operation shall be implemented in full conformity with the provisions of the WTO, including special and differential treatment, taking account of the Parties' mutual interests and their respective levels of development.

Article 35 Principles

1. Economic and trade co-operation shall be based on a true, strengthened and strategic partnership. It shall further be based on a comprehensive approach which builds on the strengths and achievements of the previous ACP-EC Conventions, using all means available to achieve the objectives set out above by addressing supply and demand side constraints. In this context, particular regard shall be had to trade development measures as a means of enhancing ACP States' competitiveness. Appropriate weight shall therefore be given to trade development within the ACP States' development strategies, which the Community shall support.

2. Economic and trade co-operation shall build on regional integration initiatives of ACP States, bearing in mind that regional integration is a key instrument for the integration of ACP countries into the world economy.

3. Economic and trade co-operation shall take account of the different needs and levels of development of the ACP countries and regions. In this context, the Parties reaffirm their attachment to ensuring special and differential treatment for all ACP countries and to maintaining special treatment for ACP LDCs and to taking due account of the vulnerability of small, landlocked and island countries.

Chapter 2 : New trading arrangements

Article 36 Modalities

1. In view of the objectives and principles set out above, the Parties agree to conclude new WTO compatible trading arrangements, removing progressively barriers to trade between them and enhancing co-operation in all areas relevant to trade.

2. The Parties agree that the new trading arrangements shall be introduced gradually and recognize the need, therefore, for a preparatory period.

3. In order to facilitate the transition to the new trading arrangements, the non-reciprocal trade preferences applied under the 4th ACP-EC Convention shall be maintained during the preparatory period for all ACP countries, under the conditions defined in Annex V to the present Agreement.

4. In this context, the Parties reaffirm the importance of the commodity protocols, attached to Annex V of this Agreement. They agree on the need to review them in the context of the new trading arrangements, in particular as regards their compatibility with WTO rules, with a view to safeguarding the benefits derived therefrom, bearing in mind the special legal status of the Sugar Protocol.

Article 37 Procedures

1. Economic partnership agreements shall be negotiated during the preparatory period which shall end by 31 December 2007 at the latest. Formal negotiations of the new trading arrangements shall start in September 2002 and the new trading arrangements shall enter into force by 1 January 2008, unless earlier dates are agreed between the Parties.

2. All the necessary measures shall be taken so as to ensure that the negotiations are successfully concluded within the preparatory period. To this end, the period up to the start of the formal negotiations of the new trading arrangements shall be actively used to make initial preparations for these negotiations.

3. The preparatory period shall also be used for capacity-building in the public and private sectors of ACP countries, including measures to enhance competitiveness, for strengthening of regional organizations and for support to regional trade integration initiatives, where appropriate with assistance to budgetary adjustment and fiscal reform, as well as for infrastructure upgrading and development, and for investment promotion.

4. The Parties will regularly review the progress of the preparations and negotiations and, will in 2006 carry out a formal and comprehensive review of the arrangements planned for all countries to ensure that no further time is needed for preparations or negotiations.

5. Negotiations of the economic partnership agreements will be undertaken with ACP countries which consider themselves in a position to do so, at the level they consider appropriate and in accordance with the procedures agreed by the ACP Group, taking into account regional integration process within the ACP.

6. In 2004, the Community will assess the situation of the non-LDC which, after consultations with the Community decide that they are not in a position to enter into economic partnership agreements and will examine all alternative possibilities, in order to provide these countries with a new framework for trade which is equivalent to their existing situation and in conformity with WTO rules.

7. Negotiations of the economic partnership agreements shall aim notably at establishing the timetable for the progressive removal of barriers to trade between the parties, in accordance with the relevant WTO rules. On the Community side trade liberalisation shall build on the acquis and shall aim at improving current market access for the ACP countries through inter alia, a review of the rules of origin. Negotiations shall take account of the level of development and the socio-economic impact of trade measures on ACP countries, and their capacity to adapt and adjust their economies to the liberalisation process. Negotiations will therefore be as flexible as possible in establishing the duration of a sufficient transitional period, the final product coverage, taking into account sensitive sectors, and the degree of asymmetry in terms of timetable for tariff dismantlement, while remaining in conformity with WTO rules then prevailing.

8. The Parties shall closely co-operate and collaborate in the WTO with a view to defending the arrangements reached, in particular with regard to the degree of flexibility available.

9. The Community will start by the year 2000, a process which by the end of multilateral trade negotiations and at the latest 2005 will allow duty free access for essentially all products from all LDC building on the level of the existing trade provisions of the fourth ACP-EC Convention and which will simplify and review the rules of origin, including cumulation provisions, that apply to their exports.

Article 38 Joint Ministerial Trade Committee

1. A Joint ACP-EC Ministerial Trade Committee shall be established

2. The Ministerial Trade Committee shall pay special attention to current multilateral trade negotiations and shall examine the impact of the wider liberalisation initiatives on ACP-EC trade and the development of ACP economies. It shall make any necessary recommendations with a view to preserving the benefits of the ACP-EC trading arrangements.

3. The Ministerial Trade Committee shall meet at least once a year. Its rules of procedure shall be laid down by the Council of Ministers. It shall be composed of representatives of the ACP States and of the Community appointed by the Council of Ministers.

Chapter 3 : Co-operation in the international fora

Article 39 General Provisions

1. The Parties underline the importance of their active participation in the World Trade Organisation as well as in other relevant international organisations by becoming members of these organisations and closely following their agenda and activities.

2. They agree to co-operate closely in identifying and furthering their common interests in international economic and trade co-operation in particular in the WTO, including participation in setting and conducting the agenda in future multilateral trade negotiations. In this context, particular attention shall be paid to improve access to the Community and other markets for products and services originating in the ACP countries.

3. They also agree on the importance of flexibility in WTO rules to take account of the ACP's level of development as well of the difficulties faced in meeting their obligations. They further agree on the need for technical assistance to enable the ACP countries to implement their commitments.

4. The Community agrees to assist the ACP States in their efforts, in accordance with the provisions set out in this Agreement, to become active members of these organisations, by developing the necessary capacity to negotiate, participate effectively, monitor and implement these agreements.

Article 40 Commodities

1. The Parties recognise the need to ensure a better operation of international commodity markets and to increase market transparency.

2. They confirm their willingness to step up consultations between them in the international fora and organisations dealing with commodities.

3. To this end, exchange of views shall take place at the request of either party :

- regarding the operation of existing international agreements or specialised intergovernmental working parties with the aim of improving them and making them more effective, consistent with market trends ;

- when it is proposed to conclude or renew an international agreement or set up a specialised intergovernmental working party.

The aim of such exchanges of views shall be to take account of the respective interest of each party. They may take place, where necessary, in the framework of the Ministerial Trade Committee.

Chapter 4 : Trade in Services

Article 41 General Provisions

1. The Parties underline the growing importance of services in international trade and their major contribution to economic and social development.

2. They reaffirm their respective commitments under the General Agreement on Trade in Services (GATS), and underline the need for special and differential treatment to ACP suppliers of services;

3. In the framework of the negotiations for progressive liberalisation in trade and services, as provided for in article XIX of GATS, the EU undertakes to give sympathetic consideration to the ACP States priorities for improvement in the EC schedule, with a view to meeting their specific interests.

4. The Parties further agree on the objective of extending under the economic partnership agreements, and after they have acquired some experience in applying the MFN treatment under GATS, their partnership to encompass the liberalisation of services in accordance with the provisions of GATS and particularly those relating to the participation of developing countries in liberalisation agreements.

5. The Community shall support the ACP States' efforts to strengthen their capacity in the supply of services. Particular attention shall be paid to services related to labour, business, distribution, finance, tourism, culture and construction and related engineering services with a view to enhancing their competitiveness and thereby increasing the value and the volume of their trade in goods and services.

Article 42 Maritime Transport

1. The Parties acknowledge the importance of cost-effective and efficient maritime transport services in a safe and clean marine environment as the main mode of transportation facilitating international trade and thereby constituting one of the forces behind economic development and the development of trade.

2. They undertake to promote the liberalisation of maritime transport and to this end apply effectively the principle of unrestricted access to the international maritime transport market on a non-discriminatory and commercial basis.

3. Each Party shall grant, inter alia, a treatment no less favourable than that accorded to its own ships, for ships operated by nationals or companies of the other Party, and for ships registered in the territory of either party, with respect to access to ports, the use of infrastructure and auxiliary maritime services of those ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

4. The Community shall support the ACP States' efforts to develop and promote cost-effective and efficient maritime transport services in the ACP States with a view to increasing the participation of ACP operators in international shipping services.

Article 43 Information and Communication Technologies, and Information Society

1. The Parties recognize the important role of information and communication technologies, as well as the active participation in the Information Society, as a pre-requisite for the successful integration of the ACP countries into the world economy.

2. They therefore reconfirm their respective commitments under existing multilateral agreements, in particular the protocol on Basic Telecommunications attached to the GATS, and invite those ACP countries, which are not yet members to these agreements, to accede to them.

3. They furthermore agree to participate fully and actively in any future international negotiation, which might be conducted in this area.

4. The Parties will therefore take measures that will enable inhabitants of ACP countries easy access to information and communication technologies, through, amongst other, the following measures :

- The development and encouragement of the use of affordable renewable energy resources;

- The development and deployment of more extensive low-cost wireless networks.

5. The Parties also agree to step up co-operation between them in the area of information and communication technologies, and the Information Society. This co-operation shall, in particular, be directed towards greater complementary and harmonization of communication systems, at national, regional and international level and their adaptation to new technologies.

Chapter 5 : Trade-related areas

Article 44 General Provisions

1. The Parties acknowledge the growing importance of new areas related to trade in facilitating progressive integration of the ACP States into the world economy. They therefore agree to strengthen their co-operation in these areas by establishing full and co-ordinated participation in the relevant international fora and agreements.

2. The Community shall support the ACP States' efforts, in accordance with the provisions set out in this Agreement and the development strategies agreed between the Parties to strengthen their capacity to handle all areas related to trade, including, where necessary, improving and supporting the institutional framework.

Article 45 Competition Policy

1. The Parties agree that the introduction and implementation of effective and sound competition policies and rules are of crucial importance in order to improve and secure an investment friendly climate, a sustainable industrialisation process and transparency in the access to markets.

2. To ensure the elimination of distortions to sound competition and with due consideration to the different levels of development and economic needs of each ACP country, they undertake to implement national or regional rules and policies including the control and under certain conditions the prohibition of 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. The Parties further agree to prohibit the abuse by one or more undertakings of a dominant position in the common market of the Community or in the territory of ACP States.

3. The Parties also agree to reinforce co-operation in this area with a view to formulating and supporting effective competition policies with the appropriate national competition agencies that progressively ensure the efficient enforcement of the competition rules by both private and state enterprises. Co-operation in this area shall, in particular, include assistance in the drafting of an appropriate legal framework and its administrative enforcement with particular reference to the special situation of the least developed countries.

Article 46 Protection of Intellectual Property Rights

1. Without prejudice to the positions of the Parties in multilateral negotiations, the Parties recognise the need to ensure an adequate and effective level of protection of intellectual, industrial and commercial property rights, and other rights covered by TRIPS including protection of geographical indications, in line with the international standards with a view to reducing distortions and impediments to bilateral trade.

2. They underline the importance, in this context, of adherence to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to the WTO Agreement and the Convention on Biological Diversity (CBD).

3. They also agree on the need to accede to all relevant international conventions on intellectual, industrial and commercial property as referred to in Part I of the TRIPS Agreement, in line with their level of development.

4. The Community, its Member States and the ACP States may consider the conclusion of agreements aimed at protecting trademarks and geographical indications for products of particular interest of either Party.

5. For the purpose of this Agreement, intellectual property includes in particular copyright, including the copyright on computer programmes and neighbouring rights, including artistic designs, and industrial property which includes utility models, patents including patents for bio-technological inventions and plant varieties or other effective sui generis systems, industrial designs, geographical indications including appellations of origin, trademarks for goods or services, topographies of integrated circuits as well as the legal protection of data bases and the protection against unfair competition as referred to in Article 10 bis of the Paris Convention for the Protection of Industrial Property and protection of undisclosed confidential information on know how.

6. The Parties further agree to strengthen their co-operation in this field. Upon request and on mutually agreed terms and conditions co-operation shall inter alia extend to the following areas: the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by rightholders and the infringement of such rights by competitors, the establishment and reinforcement of domestic and regional offices and other agencies including support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

Article 47 Standardisation and Certification

1. The Parties agree to co-operate more closely in the field of standardisation, certification and quality assurance to remove unnecessary technical barriers and to reduce differences between them in those areas, so as to facilitate trade.

In this context, they reaffirm their commitment under the Agreement on Technical Barriers to trade, annexed to the WTO Agreement (TBT Agreement).

2. Co-operation in standardisation and certification shall aim at promoting compatible systems between the Parties and in particular include:

- measures, in accordance with the TBT Agreement, to promote greater use of international technical regulations, standards and conformity assessment procedures, including sector specific measures, in accordance with the level of economic development of ACP countries.

- co-operation in the area of quality management and assurance in selected sectors of importance to the ACP States,

- support for capacity building initiatives in the ACP countries in the fields of conformity assessment, metrology and standardisation,

- developing functioning links between ACP and European standardisation, conformity assessment and certification institutions.

3. The Parties undertake to consider, in due course, negotiating mutual recognition agreements in sectors of mutual economic interest.

Article 48 Sanitary and Phytosanitary Measures

1. The Parties recognise the right of each Party to adopt or to enforce sanitary and phytosanitary measures necessary to protect human, animal or plant life or health, subject to the requirement that these measures do not constitute a means of arbitrary discrimination or a disguised restriction to trade, generally. To this end, they reaffirm their commitments under the Agreement on the Application of Sanitary and Phytosanitary Measures, annexed to the WTO Agreement (SPS-Agreement), taking account of their respective level of development.

2. They further undertake to reinforce co-ordination, consultation and information as regards notification and application of proposed sanitary and phytosanitary measures, in accordance with the SPS-Agreement whenever these measures might affect the interests of either Party. They also agree on prior consultation and co-ordination within the CODEX ALIMENTARIUS, the International Office of Epizootics and the International Plant Protection Convention, with a view to furthering their common interests.

3. The Parties agree to strengthen their co-operation with a view to reinforcing the capacity of the public and the private sector of the ACP countries in this field.

Article 49 Trade and Environment

1. The Parties reaffirm their commitment to promoting the development of international trade in such a way as to ensure sustainable and sound management of the environment, in accordance with the international conventions and undertakings in this area and with due regard to their respective level of development. They agree that the special needs and requirements of ACP States should be taken into account in the design and implementation of environment measures.

2. Bearing in mind the Rio Principles and with a view to reinforcing the mutual supportiveness of trade and environment, the Parties agree to enhance their co-operation in this field. Co-operation shall in particular aim at the establishment of coherent national, regional and international policies, reinforcement of quality controls of goods and services related to the environment, the improvement of environment-friendly production methods in relevant sectors.

Article 50 Trade and Labour Standards

1. The Parties reaffirm their commitment to the internationally recognised core labour standards, as defined by the relevant ILO Conventions, and in particular the freedom of association and the right to collective bargaining, the abolition of forced labour, the elimination of worst forms of child labour and non-discrimination in respect to employment.

2. They agree to enhance co-operation in this area, in particular in the following fields:

- exchange of information on the respective legislation and work regulation;

- the formulation of national labour legislation and strengthening of existing legislation;

- educational and awareness-raising programmes.

- Enforcement of adherence to national legislation and work regulation.

3. The Parties agree that labour standards should not be used for protectionist trade purposes.

Article 51 Consumer Policy and Protection of Consumer Health

1. The Parties agree to step up their co-operation in the area of consumer policy and consumer health protection, having due regard to domestic legislation to avoid barriers to trade.

2. Co-operation shall, in particular, aim at improving the institutional and technical capacity in this area, establishing rapid-alert systems of mutual information on dangerous products, exchanging information and experiences on the establishment and operation of post market surveillance of products and product safety, improving information provided to consumers on prices, characteristics of products and services offered, encouraging the development of independent consumer associations and contacts between consumer interest representatives, improving compatibility of consumer policies and systems, notifying enforcement and promoting co-operation in investigating harmful or unfair business practices and implementing exports prohibitions in the trade between the Parties of goods and services the marketing of which has been prohibited in their country of production.

Article 52 Tax Carve-out Clause

1. Without prejudice to the provisions of Article 32.1 of annex IV, the Most Favoured Nation treatment granted in accordance with the provisions of this Agreement, or any arrangement adopted under this Agreement, does not apply to tax advantages which the Parties are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

2. Nothing in this Agreement, or in any arrangements adopted under this Agreement, may be construed to prevent the adoption or enforcement of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

3. Nothing in this Agreement, or in any arrangements adopted under this Agreement, shall be construed to prevent the Parties from distinguishing, in the application of the relevant provisions of their fiscal legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested

Chapter 6 : Co-operation in other areas

Article 53 Fishery Agreements

1. The Parties declare their willingness to negotiate fishery agreements aimed at guaranteeing sustainable and mutually satisfactory conditions for fishing activities in ACP States.

2. In the conclusion or implementation of such agreements, the ACP States shall not discriminate against the Community or among the Member States, without prejudice to special arrangements between developing States within the same geographical area, including reciprocal fishing arrangements, nor shall the Community discriminate against ACP States.

Article 54 Food security

1. With regard to available agricultural products, the Community undertakes to ensure that export refunds can be fixed further in advance for all ACP States in respect of a range of products drawn up in the light of the food requirements expressed by those States.

2. Advance fixing shall be for one year and shall be applied each year throughout the life of this Convention, it being understood that the level of the refund will be determined in accordance with the methods normally followed by the Commission.

3. Specific agreements may be concluded with those ACP States which so request in the context of their food security policies.

4. The specific agreements referred to in paragraph 2 shall not put in jeopardy production and trade flows in ACP regions.

PART 4 : DEVELOPMENT FINANCE CO-OPERATION

Title I - General Provisions

Chapter 1 : Objectives, principles, guidelines and eligibility

Article 55 Objectives

The objectives of development finance co-operation shall be, through the provision of adequate financial resources and appropriate technical assistance, to support and promote the efforts of ACP States to achieve the objectives set out in this Agreement on the basis of mutual interest and in a spirit of interdependence.

Article 56 Principles

1. Development finance co-operation shall be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the ACP States, at both national and regional levels. Their respective geographical, social and cultural characteristics, as well as their specific potential, shall be taken into account. In addition, co-operation shall:

(a) promote local ownership at all levels of the development process;

(b) reflect a partnership based on mutual rights and obligations;

(c) emphasize the importance of predictability and security in resource flows, granted on highly concessional terms and on a continuous basis;

(d) be flexible and appropriate to the situation in each ACP State as well as adapted to the specific nature of the project or programme concerned; and

(e) ensure efficiency, co-ordination and consistency.

2. Co-operation shall ensure special treatment for Least Developed ACP countries and duly take into account the vulnerability of landlocked and island ACP countries. In addition, the specific needs of post-conflict countries shall also be addressed.

Article 57 Guidelines

1. Operations financed within the framework of this Agreement shall be implemented by the ACP States and the Community in close co-operation, the concept of equality between the partners being recognised.

2. The ACP States shall be responsible for:

(a) defining the objectives and priorities on which the indicative programmes are based;

(b) choosing projects and programmes;

(c) preparing and presenting the dossiers of projects and programmes;

(d) preparing, negotiating and concluding contracts;

(e) implementing and managing projects and programmes; and

(f) maintaining projects and programmes.

3. Without prejudice to the provisions above, eligible non-state actors may also be responsible for proposing and implementing programmes and projects in areas concerning them.

4. The ACP States and the Community shall be jointly responsible for:

(a) establishing, within the joint institutions, the guidelines for development finance co-operation;

(b) adopting the indicative programmes;

(c) appraising projects and programmes;

(d) ensuring equality of conditions for participation in invitations to tender and contracts;

(e) monitoring and evaluating the effects and results of projects and programmes; and

(f) ensuring the proper, prompt and efficient execution of projects and programmes.

5. The Community shall be responsible for taking financing decisions on projects and programmes.

6. Unless otherwise provided for in this Agreement, all decisions requiring the approval of either Contracting Party shall be approved, or be deemed approved, within 60 days of notification by the other party.

Article 58 Eligibility for financing

1. The following entities or bodies shall be eligible for financial support provided under the Agreement:

(a) ACP States;

(b) regional or inter-state bodies to which one or more ACP States belong and which are authorised by those States; and

(c) joint bodies set up by the ACP States and the Community to pursue certain specific objectives.

2. Subject to the agreement of the ACP State or ACP States concerned, the following shall also be eligible for financial support:

(a) national and/or regional public or semi-public agencies, departments or local authorities of the ACP States and, in particular, their financial institutions and development banks;

(b) companies, firms and other private organisations and private operators of ACP States;

(c) enterprises of a Community Member State to enable them, in addition to their own contribution, to undertake productive projects in the territory of an ACP State;

(d) ACP or Community financial intermediaries providing, promoting and financing private investments in ACP States; and

(e) agents of decentralised co-operation and other non-state actors from the ACP States and from the Community.

Chapter 2 : Scope and Nature of Financing

Article 59

Within the framework of the priorities established by the ACP State or States concerned at both national and regional levels, support may be given to projects, programmes and other forms of operations contributing to the objectives set out in this Agreement.

Article 60 Scope of Financing

1. The scope of financing may include, inter alia, depending on the needs and the types of operation considered most appropriate, support to:

(a) measures which contribute to attenuate the debt burden and balance of payments problems of the ACP countries;

(b) macroeconomic and structural reforms and policies;

(c) mitigation of adverse effects of instability in export earnings;

(d) sectoral policies and reforms;

(e) institutional development and capacity building;

(f) technical co-operation programmes; and

(g) humanitarian and emergency assistance including assistance to refugees and displaced persons, short-term rehabilitation measures and disaster preparedness.

Article 61 Nature of Financing

1. The nature of financing shall, inter alia, include:

(a) projects and programmes;

(b) credit lines, guarantee schemes and equity participation;

(c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments;

(d) the human and material resources necessary for effective administration and supervision of projects and programmes;

(e) sectoral and general import support programmes which may take the form of:

i. sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services;

ii. sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and

iii. general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products.

2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where:

(a) public expenditure management is transparent, accountable and effective;

(b) well defined macroeconomic or sectoral policies established by the country itself and agreed to by its main donors are in place; and

(c) public procurement is open and transparent.

3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects.

4. The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs.

5. In the framework of the Agreement, the European Development Fund (hereinafter referred to as the Fund) including counterpart funds, unexpended balance from previous Funds, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate resources drawn from the European Community's budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement.

6. The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing.

Title II - Financial Co-operation

Chapter 1 : Financial resources

Article 62 Overall amount

1. For the purposes set out in this Agreement, the overall amount of the Community's financial assistance and the detailed terms and conditions of financing are provided for in the annexes to this Agreement.

2. Should an ACP State fail to ratify this Agreement or denounce it , the Contracting Parties shall adjust the amounts of the resources provided for in the Financial Protocol. Adjustment of the financial resources shall also apply upon:

(a) the accession to the Agreement of new ACP States which did not take part in its negotiation; and

(b) the enlargement of the Community.

Article 63 Methods of financing

The methods of financing for each project or programme shall be determined jointly by the ACP State or States concerned and the Community by reference to:

(a) the level of development, the geographical situation and economic and financial circumstances of these States;

(b) the nature of the project or programme, its economic and financial return as well as its social and cultural impact; and

(c) in the case of loans, to factors guaranteeing their servicing.

Article 64 On-lending operations

1. Financial assistance may be made available to or through the ACP States concerned or, subject to the provisions of this Agreement through eligible financial institutions or directly to any other eligible beneficiary. Where financial assistance is granted to the final recipient through an intermediary or directly to the final beneficiary in the private sector:

(a) the terms and conditions on which the assistance may be made available by the intermediary to the final recipient or directly to the final beneficiary in the private sector shall be laid down in the financing agreement or loan contract; and

(b) any financial benefit accruing to the intermediary from the on-lending transaction or resulting from direct lending operations to the final beneficiary in the private sector, shall be used for development purposes on the conditions laid down in the financing agreement or the loan contract, after taking into account administrative costs, exchange and financial risks and the cost of technical assistance given to the final recipient.

2. Where the financing is undertaken through an on-lending body based and/or operating in the ACP States, it shall be the responsibility of that body to select and appraise individual projects and to administer the funds placed at its disposal under the conditions provided for in this Agreement and by mutual agreement between the parties.

Article 65 Co-financing

1. The financial resources provided for in this Agreement may be applied, at the request of the ACP States, to co-financing undertaken in particular with development agencies and institutions, Community Member States, ACP States, third countries or international or private financial institutions, firms or export credit agencies.

2. Special consideration shall be given to the possibility of co-financing in cases where Community participation will encourage the participation of other sources of finance and where such financing may lead to an advantageous financial package for the ACP State concerned.

3. Co-financing may be in the form of joint or parallel financing. Preference shall be given in each case to the solution, which is more suitable from the point of view of cost-effectiveness. In addition, measures shall be taken to co-ordinate and harmonise operations of the Community and those of other co-financing bodies in order to minimise the number of procedures to be undertaken by the ACP States and to render those procedures more flexible.

4. The process of consultation and co-ordination with other donors and co-financiers should be strengthened and developed, where possible, through the establishment of co-financing framework agreements and co-financing policies and procedures should be reviewed to ensure effectiveness and the best terms and conditions possible.

Chapter 2 : Debt and Structural Adjustment support

Article 66 Support for debt relief

1. In order to attenuate the debt burden of the ACP States and their balance-of-payment problems, the parties agree to use the resources provided for in this Agreement to contribute to debt relief initiatives approved at international level for the benefit of ACP countries. In addition, on a case by case basis, the use of resources which have not been committed in the framework of past indicative programmes shall be accelerated through the quick-disbursing instruments provided for in this Agreement. The Community furthermore commits itself to examine how in the longer term other resources than the EDF can be mobilised in support of internationally agreed debt relief initiatives.

2. At the request of an ACP State, the Community may grant:

(a) assistance in studying and finding practical solutions to indebtedness including domestic debt, debt-servicing difficulties and balance of payments problems;

(b) training in debt management and international financial negotiations as well as support for training workshops, courses and seminars in these fields; and

(c) assistance to develop flexible techniques and instruments of debt management.

3. In order to contribute to the servicing of the debt resulting from loans from the Bank's own resources, special loans and risk capital, the ACP States may, in accordance with arrangements to be made on a case-by-case basis with the Commission, use the available foreign currency referred to in this Agreement for such servicing, as and when debt repayment falls due and up to the amount required for payments in national currency.

4. Given the seriousness of the international debt problem and its impact on economic growth, the parties declare their readiness to continue to exchange views, within the context of international discussions, on the general problem of debt, and without prejudice to specific discussions taking place in the relevant fora.

Article 67 Structural adjustment support

1. The Agreement shall provide support for macroeconomic and sectoral reforms implemented by the ACP States. In this framework, the Parties shall ensure that adjustment is economically viable and socially and politically bearable. Support shall be given in the context of a joint assessment between the Community and the ACP State concerned on the reform measures being undertaken or contemplated either at macroeconomic or sectoral level, and permit an overall evaluation of the reform efforts. Quick disbursement shall be an important feature of support programmes.

2. The ACP States and the Community recognise the necessity to encourage reform programmes at regional level ensuring that, in the preparation and execution of national programmes, due consideration is given to regional activities which have an influence on national development. To this end, support for structural adjustment shall also seek to:

(a) incorporate, from the beginning of the diagnosis, measures to encourage regional integration and take account of the consequences of trans-border adjustment;

(b) support the harmonisation and co-ordination of macroeconomic and sectoral policies, including fiscal and customs areas, so as to fulfil the dual aim of regional integration and of structural reform at national level; and

(c) take account of the net transitional costs of regional integration on budget revenue and balance of payments, either through general import programmes or budgetary support.

3. ACP States undertaking or contemplating reform at the macroeconomic or sectoral level shall be eligible for structural adjustment assistance, giving consideration to the regional context, their effectiveness and the likely impact on the economic, social and political dimension of development and on economic and social hardships being experienced.

4. The ACP States undertaking reform programmes that are acknowledged and supported at least by the principal multilateral donors, or that are agreed with such donors but not necessarily financially supported by them, shall be treated as having automatically satisfied the requirements for adjustment assistance.

5. Structural adjustment support shall be mobilised in a flexible manner and in the form of sectoral and general import programmes or budgetary support.

6. The preparation, appraisal and financing decision for structural adjustment programmes shall be carried out according to the provisions on implementation procedures of this Agreement with due regard to the quick disbursing feature of structural adjustment programmes. On a case-by-case basis, retroactive financing of a limited part of imports of ACP-EC origin may be permissible.

7. The implementation of each support programme shall ensure that the eligibility of ACP economic operators for access to the resources of the programme is as wide and transparent as possible and that the procurement procedures accord with the administrative and commercial practices in the State concerned, while ensuring the best possible price/quality ratio on imported goods and the necessary consistency with the progress achieved internationally for harmonising the procedures for supporting structural adjustment.

Chapter 3 : Support in cases of short-term fluctuations in export earnings

Article 68

1. The Parties recognize that instability of export earnings, particularly in the agricultural and mining sectors, may adversely affect the development of the ACP States and jeopardise the attainment of their development requirements. A system of additional support in order to mitigate the adverse effects of any instability in export earnings, including in the agricultural and mining sectors, is therefore set up within the financial envelope for support to long-term development.

2. The purpose of support in cases of short-term fluctuations in export earnings is to safeguard macroeconomic and sectoral reforms and policies that are at risk as a result of a drop in revenue and remedy the adverse effects of instability of export earnings in particular from agricultural and mining products.

3. The extreme dependence of the ACP States' economies on exports, in particular from the agricultural and mining sectors, shall be taken into account in the allocation of resources in the year of application. In this context, the least developed, landlocked and island ACP States shall receive more favourable treatment.

4. The additional resources shall be provided in accordance with the specific modalities of the support mechanism as set out in Annex II on Terms and Conditions of Financing.

5. The Community shall also provide support for market based insurance schemes designed for ACP States seeking to protect themselves against the risk of fluctuations in export earnings.

1.1.1.

Chapter 4 : Support for sectoral policies

Article 69

1. Co-operation shall support, through the various instruments and modalities provided for in the Agreement:

(a) social and economic sectoral policies and reforms;

(b) measures to enhance productive sector activity and export competitiveness;

(c) measures to expand social sector services; and

(d) thematic and cross cutting issues.

2. This support shall be provided as appropriate through:

(a) sectoral programmes;

(b) budgetary support;

(c) investments;

(d) rehabilitation;

(e) training;

(f) technical assistance; and

(g) institutional support.

1.1.1.

Chapter 5 : Microprojects and decentralised co-operation

Article 70

In order to respond to the needs of local communities with regard to development, and to encourage all agents of decentralized co-operation which are in a position to contribute to the autonomous development of the ACP States to put forward and implement initiatives, co-operation shall support, within the framework laid down in the rules and national legislation of the ACP States concerned and the provisions of the indicative programme, such development operations. In this context, co-operation shall support :

(a) micro-projects at local level which have an economic and social impact on the life of the people, meet a demonstrated and observed priority need, and shall be undertaken at the initiative and with the active participation of the local community which shall benefit therefrom; and

(b) decentralized co-operation, in particular where such operations combine efforts and resources of decentralised agents from the ACP States and their counterparts from the Community. This form of co-operation shall enable the mobilisation of capabilities, innovative operating methods and resources of decentralised agents for the development of the ACP State.

Article 71

1. Microprojects and decentralized co-operation operations may be supported from the financial resources of the Agreement. Projects or programmes under this form of co-operation may or may not be linked to programmes in the sectors of concentration of the indicative programmes, but may be a way of achieving the specific objectives of the indicative programme or the results of initiatives by local communities or decentralised agents.

2. Contributions for the financing of micro-projects and decentralized co-operation shall be made by the Fund, in which case the contribution shall not normally exceed three-quarters of the total cost of each project and may not exceed the limit set in the indicative programme. The remaining balance shall be provided:

(a) by the local community concerned in case of micro-projects (either in kind or in the form of services or cash and adapted to its capacity to contribute);

(b) by the agents of decentralized co-operation, provided that the financial, technical material and other resources brought in by such agents shall not normally be less than 25% of the estimated cost of the project/programme; and

(c) exceptionally by the ACP State concerned, either in the form of a financial contribution or through the use of public equipment or the supply of services.

3. The procedures applicable to projects and programmes financed within the framework of microprojects or decentralized co-operation shall be those laid down in the Agreement, in particular those referred to in multi-annual programmes.

Chapter 6 - Humanitarian and emergency assistance

Article 72

1. Humanitarian and emergency assistance shall be accorded to the population in ACP States faced with serious economic and social difficulties of an exceptional nature resulting from natural disasters, man-made crises such as wars and other conflicts or extraordinary circumstances having comparable effects. The humanitarian and emergency assistance shall be maintained for as long as necessary to deal with the emergency needs resulting from these situations.

2. Humanitarian and emergency assistance shall be granted exclusively according to the needs and interests of victims of disasters and in line with the principles of international humanitarian law. In particular, there shall be no discrimination between victims on grounds of race, ethnic origin, religion, gender, age, nationality or political affiliation and free access to and protection of victims shall be guaranteed as well as the security of humanitarian personnel and equipment.

3. Humanitarian and emergency assistance shall aim to:

(a) safeguard human lives in crises and immediate post-crisis situations brought about by natural disasters, conflict or war;

(b) contribute to the financing and delivery of humanitarian aid and to the direct access to it of its intended beneficiaries by all logistical means available;

(c) carry out short-term rehabilitation and reconstruction to enable the parts of the population affected to benefit once more from a minimum of socio-economic integration and, as soon as possible, create the conditions for a resumption of development on the basis of long-term objectives set by the ACP country concerned;

(d) address the needs arising from the displacement of people (refugees, displaced persons and returnees) following natural or man-made disasters so as to meet, for as long as necessary, all the needs of refugees and displaced persons (wherever they may be) and facilitate action for their voluntary repatriation and re-integration in their country of origin; and

(e) assist the ACP State in setting up disaster prevention and preparedness mechanisms, including prediction and early-warning systems, with a view to reducing the consequences of disasters.

4. Similar assistance, as set out above, may be granted to ACP States taking in refugees or returnees to meet acute needs not covered by emergency assistance.

5. Underlining the developmental nature of the assistance granted in accordance with this article, assistance may be used exceptionally together with the indicative programme at the request of the State concerned.

6. Humanitarian and emergency assistance operations shall be undertaken either at the request of the ACP country affected by the crisis situation, the Commission, international organisations or local or international non-state organisations. Such assistance shall be administered and implemented under procedures permitting operations that are rapid, flexible and effective. The Community shall take adequate steps to facilitate speedy action, which is required to meet the immediate needs for which emergency assistance is needed.

Article 73

1. Post-emergency action, aimed at physical and social rehabilitation consequent on the results of natural disasters or extraordinary circumstances having comparable effects, may be undertaken with Community assistance under this Agreement. Such action, using effective and flexible mechanisms, must ease the transition from the emergency phase to the development phase, promote the socio-economic reintegration of the parts of the population affected, remove as far as possible the causes of the crisis and strengthen institutions and the ownership by local and national actors of their role in formulating a sustainable development policy for the ACP country concerned.

2. Short-term emergency action shall only in exceptional circumstances be financed under the EDF where such assistance cannot be financed from the Community's budget.

1.1.1.

Chapter 7 : Investment and private sector development support

Article 74

Co-operation shall, through financial and technical assistance, support the policies and strategies for investment and private sector development as set out in this Agreement.

Article 75 Investment promotion

The ACP States, the Community and its Member States, within the scope of their respective competencies, recognising the importance of private investment in the promotion of their development co-operation and acknowledging the need to take steps to promote such investment, shall :

(a) implement measures to encourage participation in their development efforts by private investors who comply with the objectives and priorities of ACP-EC development co-operation and with the appropriate laws and regulations of their respective States;

(b) take measures and actions which help to create and maintain a predictable and secure investment climate as well as enter into negotiations on agreements which will improve such climate;

(c) encourage the EU private sector to invest and to provide specific assistance to its counterparts in the ACP countries under mutual business co-operation and partnerships;

(d) facilitate partnerships and joint ventures by encouraging co-financing;

(e) sponsor sectoral investment fora to promote partnerships and external investment;

(f) support efforts of the ACP States to attract financing, with particular emphasis on private financing, for infrastructure investments and revenue generating infrastructure critical for the private sector;

(g) support capacity building for domestic investment promotion agencies and institutions involved in promoting and facilitating foreign investment;

(h) disseminate information on investment opportunities and business operating conditions in the ACP States; and

(i) promote national, regional and ACP-EU private sector business dialogue, co-operation and partnerships, in particular through an ACP-EU private sector business forum. Support for operations of an ACP-EU private sector business forum shall be provided in pursuit of the following objectives:

i. to facilitate dialogue within the ACP/EU private sector and between the ACP/EU private sector and the bodies established under the Agreement;

ii. to analyse and periodically provide the relevant bodies with information on the whole range of issues concerning relations between the ACP and EU private sectors in the context of the Agreement or, more generally, of economic relations between the Community and the ACP countries; and

iii. to analyse and provide the relevant bodies with information on specific problems of a sectoral nature relating to, inter alia, branches of production or types of products at regional or sub-regional level.

Article 76 Investment finance and support

1. Co-operation shall provide long-term financial resources, including risk capital, to assist in promoting growth in the private sector and help to mobilise domestic and foreign capital for this purpose. To this end, co-operation shall provide, in particular:

(a) grants for financial and technical assistance to support policy reforms, human resource development, institutional capacity-building or other forms of institutional support related to a specific investment, measures to increase the competitiveness of enterprises and to strengthen the capacities of the private financial and non-financial intermediaries, investment facilitation and promotion and competitiveness enhancement activities;

(b) advisory and consultative services to assist in creating a responsive investment climate and information base to guide and encourage the flow of capital;

(c) risk-capital for equity or quasi-equity investments, guarantees in support of domestic and foreign private investment and loans or lines of credit on the conditions laid down in Annex II "Terms and Conditions of Financing" to this Agreement; and

(d) loans from the Bank's own resources.

2. Loans from the Bank's own resources shall be granted in accordance with its statute and with the terms and conditions laid down in Annex II to this Agreement.

Article 77 Investment guarantees

1. Investment guarantees are an increasingly important tool for development finance as they contribute to reducing project risks and inducing private capital flows. Co-operation shall therefore ensure the increasing availability and use of risk insurance as a risk-mitigating mechanism in order to boost investor confidence in the ACP States.

2. Co-operation shall offer guarantees and assist with guarantees funds covering risks for qualified investment. Specifically, co-operation shall provide support to:

(a) reinsurance schemes to cover foreign direct investment by eligible investors; against legal uncertainties and the major risks of expropriation, currency transfer restriction, war and civil disturbance, and breach of contract. Investors may insure projects for any combination of the four types of coverage;

(b) guarantee programmes to cover risk in the form of partial guarantees for debt financing. Both partial risk and partial credit guarantee shall be available; and

(c) national and regional guarantee funds, involving, in particular, domestic financial institutions or investors for encouraging the development of the financial sector.

3. Co-operation shall also provide support to capacity-building, institutional support and participation in the core funding of national and/or regional initiatives to reduce the commercial risks for investors (inter alia guarantee funds, regulatory bodies, arbitration mechanisms and judiciary systems to enhance the protection of investments improving the export credit systems).

4. Co-operation shall provide such support on the basis of complementary and added value with respect to private and/or public initiatives and, whenever feasible, in partnership with private and other public organisations. The ACP and the EC will within the framework of the ACP-EC Development Finance Co-operation Committee undertake a joint study on the proposal to set up an ACP-EC Guarantee Agency to provide and manage investment guarantee programmes.

Article 78 Investment protection

1. The ACP States and the Community and its Member States, within the scope of their respective competencies, affirm the need to promote and protect either Party's investments on their respective territories, and in this context affirm the importance of concluding, in their mutual interest, investment promotion and protection agreements which could also provide the basis for insurance and guarantee schemes.

2. In order to encourage European investment in development projects of special importance to, and promoted by the ACP States, the Community and the Member States, on the one hand and the ACP States on the other, may also conclude agreements relating to specific projects of mutual interest where the Community and European enterprises contribute towards their financing.

3. The Parties also agree to introduce, within the economic partnership agreements, and while respecting the respective competencies of the Community and its Member States, general principles on protection and promotion of investments, which will endorse the best results agreed in the competent international fora or bilaterally.

Title III - Technical Co-operation

Article 79

1. Technical co-operation shall assist the ACP States in the development of national and regional manpower resources, the sustained development of the institutions critical for development success, including inter alia strengthening ACP consulting firms and organisations, as well as exchange arrangements involving consultants from both ACP and EU firms.

2. Furthermore, technical co-operation, shall be cost-effective and relevant to the need for which it is intended, and shall also favour the transfer of know-how and increase national and regional capabilities. Technical co-operation shall contribute to the achievement of project and programme goals, including efforts to strengthen management capacity of the National and Regional Authorising Officers. Technical assistance shall:

(a) be demand-driven and thus made available only at the request of the ACP State or States concerned, and adapted to recipient needs;

(b) complement and support ACP efforts to identify their own requirements;

(c) be monitored and followed up to guarantee effectiveness;

(d) encourage the participation of ACP experts, consultancy firms and educational and research institutions in contracts financed from the Fund and identify ways of employing qualified national and regional personnel on Fund projects;

(e) encourage the secondment of ACP national cadres as consultants to an institution in their own country, or a neighbouring country, or to a regional organisation;

(f) aim at developing knowledge of national and regional manpower constraints and potential and establish a register of ACP experts, consultants and consultancy firms suitable for employment on projects and programmes financed from the Fund;

(g) support intra-ACP technical assistance in order to promote the exchange between the ACP States of technical assistance, management and professional expertise;

(h) develop action programmes for long-term institution building and staff development as an integral part of project and programme planning, account being taken of the necessary financial requirements;

(i) support arrangements to enhance the capacity of the ACP States to build up their own expertise; and

(j) give special attention to the development of the ACP States' capacities in project planning, implementation and evaluation, as well budget management.

3. Technical assistance may be provided in all areas of co-operation and within the limits of the mandate of this Agreement. The activities covered would be diverse in scope and nature, and would be tailored to meet the needs of the ACP States.

4. Technical co-operation may be either of a specific or a general nature. The ACP-EC Development Finance Co-operation Committee shall establish the guidelines for the implementation of technical co-operation.

Article 80

With a view to reversing the brain drain from the ACP States, the Community shall assist ACP States which so request to facilitate the return of qualified ACP nationals resident in developed countries through appropriate re-installation incentives.

1.1.

Title IV - Procedures and Management Systems

Article 81 Procedures

Management procedures shall be transparent, easy to apply and shall enable the decentralisation of tasks and responsibilities to the field. The implementation of ACP-EU development co-operation shall be open to non-state actors in areas that concern them. The detailed procedural provisions for programming, preparation, implementation and the management of financial and technical co-operation are laid down in Annex IV on Implementation and Management Procedures. The Council of Ministers may review, revise and amend these provisions on the basis of a recommendation from the ACP-EU Development Finance Co-operation Committee.

Article 82 Executing agents

For the implementation of financial and technical co-operation under this Agreement, executing agents are designated. Detailed provisions for the responsibilities of the executing agents are laid down in Annex IV on Implementation and Management Procedures.

Article 83 ACP-EC Development Finance Co-operation Committee

1. The Council of Ministers shall at least once a year examine whether the objectives of development finance co-operation are being attained and shall examine the general and specific problems resulting from the implementation of that co-operation. To this end, an ACP-EC Development Finance Co-operation Committee, hereinafter referred to as 'the ACP-EC Committee', shall be set up within the Council of Ministers.

2. The ACP-EC Committee shall, inter alia :

(a) ensure the overall achievement of the objectives and principles of development finance co-operation and establish general guidelines for their effective and timely implementation;

(b) examine the problems arising from the implementation of development co-operation activities and propose appropriate measures;

(c) review the annexes to the Agreement to ensure their continued relevance and recommend any appropriate amendments to the Council of Ministers for approval; and

(d) examine the operations deployed within the framework of the Agreement to attain the objectives of promoting private sector development and investment and the operations of the Investment Facility.

3. The ACP-EC Committee, which shall meet every quarter, shall be composed, on a basis of parity, of representatives of the ACP States and of the Community appointed by the Council of Ministers, or their authorised representatives. It shall meet at ministerial level whenever one of the parties so requests and at least once a year.

4. The Council of Ministers shall lay down the ACP-EC Committee's rules of procedure, in particular the conditions for representation and the number of members of the Committee, the detailed arrangements for their deliberations and the conditions for holding the chair.

5. The ACP-EC Committee may convene meetings of experts to study the cause of any difficulties and bottlenecks, which may impede the efficient implementation of development co-operation. These experts shall make recommendations to the Committee on possible ways of removing such difficulties and bottlenecks.

PART 5 : GENERAL PROVISIONS FOR THE LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP STATES

Chapter 1 : General provisions

Article 84

1. To enable LDLIC's to take full advantage of the opportunities offered by the Convention so as to step up their respective rates of development, co-operation shall ensure special treatment for the least developed ACP countries and take due account of the vulnerability of landlocked and island ACP countries. It shall also take into consideration the needs of countries in post-conflict situations.

2. Independently of the specific measures and provisions for the least-developed, landlocked and island countries in the different chapters of the Convention, special attention shall be paid in respect of these groups as well as countries in post-conflict situations to :

(a) the strengthening of regional co-operation

(b) transport and communications' infrastructure;

(c) the efficient exploitation of marine resources and the marketing of products so produced and, in the case of landlocked countries, inland fisheries;

(d) structural adjustment where account shall be taken of the level of development of these countries and equally, at the implementation stage, of the social dimension of adjustment; and

(e) the implementation of food strategies and integrated development programmes.

Chapter 2 : Least-developed ACP States

Article 85

1. The least-developed ACP States shall be accorded a special treatment in order to enable them to overcome the serious economic and social difficulties hindering their development so as to step up their respective rates of development.

2. The list of least-developed countries is given in Annex VI. It may be amended by a decision of the Council of Ministers where :

(a) a third State in a comparable situation accedes to this Agreement; and

(b) the economic situation of an ACP State changes considerably and durably to the extent that it needs to be included in the least-developed category or its inclusion in that category is no longer justified.

Article 86

The provisions adopted in respect of the least-developed ACP States are contained in the following Articles : 2, 29, 32, 35, 37, 56, 68, 84, 85.

Chapter 3 : Landlocked ACP States

Article 87

1. Specific provisions and measures shall be established to support landlocked ACP States in their efforts to overcome the geographical difficulties and other obstacles hampering their development so as to enable them to step up their respective rates of development.

2. The list of landlocked ACP States in given in Annex VI. It may be amended by decision of the Council of Ministers when a third state in a comparable situation accedes to the Agreement.

Article 88

The provisions adopted in respect of the landlocked ACP States are contained in the following Articles : 2, 32, 35, 56, 68, 84, 87.

Chapter 4 : Island ACP States

Article 89

1. Specific provisions and measures shall be established to support island ACP States in their efforts to overcome the natural and geographical difficulties and other obstacles hampering their development so as to enable them to step up their respective rates of development.

2. The list of island ACP States in given in Annex VI. It may be amended by decision of the Council of Ministers when a third state in a comparable situation accedes to the Agreement.

Article 90

The provisions adopted in respect of the island ACP States are contained in the following Articles : 2, 32, 35, 56, 68, 84, 89.

PART 6 : FINAL PROVISIONS

Article 91 Conflict between this Agreement and other treaties

No treaty, convention, agreement or arrangement of any kind between one or more Member States of the Community and one or more ACP States may impede the implementation of this Agreement.

Article 92 Territories concerned

Subject to the special provisions regarding the relations between the ACP States and the French overseas departments provided for therein, this Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territories of the ACP States.

Article 93 Ratification and entry into force

1. This Agreement shall be ratified or approved by the signatory Parties in accordance with their respective constitutional rules and procedures.

2. The instruments of ratification or approval of this Agreement shall be deposited in the case of the ACP States, with the General Secretariat of the Council of the European Union and in the case of the Community and the Member States, with the General Secretariat of the ACP States. The Secretariats shall promptly notify the signatory States and the Community.

3. This Agreement shall enter into force on the first day of the second month following the date of deposit of the instruments of ratification of the Member States and of at least two-thirds of the ACP States, and of the instrument of approval of this Agreement by the Community.

4. An ACP signatory State that has not completed the procedures set out in paragraphs 1 and 2 by the date on which this Agreement enters into force as provided for in paragraph 3 may do so only within the 12 months following that date, without prejudice to the provisions of paragraph 6.

For such States this Agreement shall become applicable on the first day of the second month following the completion of these procedures. These States shall recognise the validity of any measure taken to implement the Agreement after the date of its entry into force.

5. The rules of procedure of the joint institutions set up under this Agreement shall lay down the conditions under which the representatives of signatory States referred to in paragraph 4 may attend those institutions as observers.

6. The Council of Ministers may decide to accord special support to ACP States party to previous ACP-EC Conventions which, in the absence of normally established government institutions, have not been able to sign or ratify this Agreement. This support may concern institution building and economic and social development activities, taking particular account of the needs of the most vulnerable sections of the population. In this context, such countries will be able to draw on the funds provided for in Part 4 of this Agreement for financial and technical co-operation.

By derogation from paragraph 4, the countries concerned which are signatories to the Agreement may complete the ratification procedures within twelve months of the restoration of government institutions.

The countries concerned which have neither signed nor ratified the Agreement may accede to it by means of the accession procedure provided for in Article 94.

Article 94 Accession

1. Any request for accession to this Agreement made by an independent State whose structural characteristics and economic and social situation are comparable to those of the ACP States shall be presented to the Council of Ministers.

If the request is approved by the Council of Ministers, the State concerned shall accede to this Agreement by depositing an act of accession with the General Secretariat of the Council of the European Union, which shall send a certified copy to the ACP Secretariat and notify the Member States. The Council of Ministers may lay down any amending measures that might be necessary.

The State concerned shall enjoy the same rights and be subject to the same obligations as the ACP States. Its accession may not infringe on the benefits enjoyed by the ACP States signatory to this Agreement under the provisions on development co-operation financing. The Council of Ministers may lay down the conditions and specific arrangements for the accession of an individual State in a special protocol that shall form an integral part of the Agreement.

2. The Council of Ministers shall be advised of any request made by a third State to become a member of an economic grouping of ACP States.

3. The Council of Ministers shall be advised of any request made by a third State to become a member of the European Union. During the negotiations between the Union and the applicant State, the Community shall provide the ACP States with any relevant information and they in turn shall convey their concerns to the Community so that it can take them fully into account. The ACP Secretariat shall be notified by the Community of any accession to the European Union.

Any new Member State of the European Union shall become a contracting party to this Agreement from the date of its accession by means of a clause to this effect in the act of accession. If the act of accession to the Union does not provide for such automatic accession of the Member State to this Agreement, the Member State concerned shall accede by depositing an act of accession with the General Secretariat of the Council of the European Union, which shall send a certified copy to the ACP Secretariat and notify the Member States.

The Parties shall review the effects of the accession of new Member States on this Agreement. The Council of Ministers may decide on any transitional or amending measures that might be necessary.

Article 95 Duration of the agreement and revision clause

1. This Agreement is hereby concluded for a period of twenty years, commencing on 1 March 2000.

2. Financial protocols are defined for each five-year period.

3. The Community and the Member States, on the one hand, and the ACP States, on the other, shall notify the other party not later than 12 months before the expiry of each five-year period of any review of the provisions they desire to make with a view to a possible amendment of the Agreement. This shall not apply, however, to the provisions on economic and trade co-operation, for which a special review procedure is provided for. Notwithstanding this time limit, if one party requests the review of any provisions of the Agreement, the other party shall have a period of two months in which to request the extension of the review to other provisions related to those which were the subject of the initial request.

Ten months before the expiry of this five-year period, the contracting Parties shall enter into negotiations with a view to examining any possible amendments to the provisions that were the subject of the notification.

Article 93 shall also apply to the amendments made.

The Council of Ministers shall adopt any transitional measures that may be required in respect of the amended provisions until they come into force.

4. Eighteen months before the end of the total period of the Agreement, the contracting Parties shall enter into negotiations in order to examine what provisions shall subsequently govern their relations.

The Council of Ministers shall adopt any transitional measures that may be required until the new Agreement comes into force.

Article 96 Essential elements: consultation procedure and appropriate measures as regards human rights, democratic principles and the rule of law

1. Within the meaning of this Article, the term "Party" refers to the Community and the Member States of the European Union, of the one part, and each ACP State, of the other part.

2. (a) If, despite the political dialogue conducted regularly between the Parties, a Party considers that the other Party has failed to fulfil an obligation stemming from respect for human rights, democratic principles and the rule of law referred to in paragraph 2 of Article 9, it shall, except in cases of special urgency, supply the other Party and the Council of Ministers with the relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. To this end, it shall invite the other Party to hold consultations that focus on the measures taken or to be taken by the party concerned to remedy the situation.

The consultations shall be conducted at the level and in the form considered most appropriate for finding a solution.

The consultations shall begin no later than 15 days after the invitation and shall continue for a period established by mutual agreement, depending on the nature and gravity of the violation. In any case, the consultations shall last no longer than 60 days.

If the consultations do not lead to a solution acceptable to both Parties, if consultation is refused, or in cases of special urgency, appropriate measures may be taken. These measures shall be revoked as soon as the reasons for taking them have disappeared.

(b) The term "cases of special urgency" shall refer to exceptional cases of particularly serious and flagrant violation of one of the essential elements referred to in paragraph 2 of Article 9, that require an immediate reaction.

The Party resorting to the special urgency procedure shall inform the other Party and the Council of Ministers separately of the fact unless it does not have time to do so.

(c) The "appropriate measures" referred to in this Article are measures taken in accordance with international law, and proportional to the violation. In the selection of these measures, priority must be given to those which least disrupt the application of this agreement. It is understood that suspension would be a measure of last resort.

If measures are taken in cases of special urgency, they shall be immediately notified to the other Party and the Council of Ministers. At the request of the Party concerned, consultations may then be called in order to examine the situation thoroughly and, if possible, find solutions. These consultations shall be conducted according to the arrangements set out in the second and third subparagraphs of paragraph (a).

Article 97 Consultation procedure and appropriate measures as regards corruption

1. The Parties consider that when the Community is a significant partner in terms of financial support to economic and sectoral policies and programmes, serious cases of corruption should give rise to consultations between the parties.

2. In such cases either Party may invite the other to enter into consultations. Such consultations shall begin no later than 21 days after the invitation and shall last no longer than 60 days.

3. If the consultations do not lead to a solution acceptable to both Parties or if consultation is refused, the Parties shall take the appropriate measures. In all cases, it is above all incumbent on the Party where the serious cases of corruption have occurred to take the measures necessary to remedy the situation immediately. The measures taken by either party must be proportional to the seriousness of the situation. In the selection of these measures, priority must be given to those which least disrupt the application of this agreement. It is understood that suspension would be a measure of last resort.

4. Within the meaning of this Article, the term "Party" refers to the Community and the Member States of the European Union, of the one part, and each ACP State, of the other part.

Article 98 Dispute settlement

1. Any dispute arising from the interpretation or application of this Agreement between one or more Member States or the Community, on the one hand, and one or more ACP States on the other, shall be submitted to the Council of Ministers.

Between meetings of the Council of Ministers, such disputes shall be submitted to the Committee of Ambassadors.

2. (a) If the Council of Ministers does not succeed in settling the dispute, either Party may request settlement of the dispute by arbitration. To this end, each Party shall appoint an arbitrator within thirty days of the request for arbitration. In the event of failure to do so, either Party may ask the Secretary General of the Permanent Court of Arbitration to appoint the second arbitrator.

(b) The two arbitrators shall in turn appoint a third arbitrator within thirty days. In the event of failure to do so, either Party may ask the Secretary General of the Permanent Court of Arbitration to appoint the third arbitrator.

(c) Unless the arbitrators decide otherwise, the procedure applied shall be that laid down in the optional arbitration regulation of the Permanent Court of Arbitration for International Organisations and States. The arbitrators' decisions shall be taken by majority vote within three months.

(d) Each Party to the dispute shall be bound to take the measures necessary to carry out the decision of the arbitrators.

(e) For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.

Article 99 Denunciation clause

This Agreement may be denounced by the Community and its member States in respect of each ACP State and by each ACP State in respect of the Community and its Member States, upon six months' notice.

Article 100 Status of the texts

The protocols and annexes attached to this Agreement shall form an integral part thereof. The annexes n° II, III, IV & VI may be revised, reviewed and/or amended by the Council of Ministers on the basis of a recommendationfrom the ACP-EC Development Finance Co-operation Committee.

This Agreement, drawn up in two copies in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, all texts being equally authentic, shall be deposited in the archives of the General Secretariat of the Council of the European Union and the Secretariat of the ACP States, which shall both transmit a certified copy to the government of each of the Signatory States.

VOLUME II

PARTNERSHIP AGREEMENT BETWEEN THE AFRICAN CARIBBEAN AND PACIFIC STATES AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES

ANNEXES TO THE AGREEMENT

PARTNERSHIP AGREEMENT BETWEEN THE AFRICAN CARIBBEAN AND PACIFIC STATES AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES

ANNEXES TO THE AGREEMENT

TABLE OF CONTENTS

ANNEX I : FINANCIAL PROTOCOL

ANNEX II : TERMS AND CONDITIONS OF FINANCING

Chapter 1 Investment financing

Chapter 2 Special operations

Chapter 3 Financing for short-term fluctuations in export earnings

Chapter 4 Other provisions

Chapter 5 investment protection agreements

ANNEX III : INSTITUTIONAL SUPPORT - CDE AND CTA

ANNEX IV : IMPLEMENTATION AND MANAGEMENT PROCEDURES

Chapter 1 Programming (national)

Chapter 2 Programming and preparation (regional)

Chapter 3 Project implementation

Chapter 4 Competition and preferences

Chapter 5 Monitoring and evaluation

Chapter 6 Management and executing agents

ANNEX V : Trade regime applicable during the preparatory period referred to in Article 37 (1)

Chapter 1 General trade arrangements

Chapter 2 Special undertaking on sugar and beef and veal

Chapter 3 Final provisions

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

TITLE I GENERAL PROVISIONS

TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

TITLE III TERRITORIAL REQUIREMENTS

TITLE IV PROOF OF ORIGIN

TITLE V ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

TITLE VI CEUTA AND MELILLA

TITLE VII FINAL PROVISIONS

ANNEX I to Protocol 1 Introductory notes to the list in Annex II

ANNEX II to Protocol 1 List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

ANNEX III to Protocol 1

ANNEX IV to Protocol 1 Form for movement certificate

ANNEX V to Protocol 1 Invoice declaration

ANNEX VIA to Protocol 1 Supplier declaration for products having preferential origin status

ANNEX VIB to Protocol 1 Supplier declaration for products not having preferential original status

ANNEX VII to protocol 1 information certificate

ANNEX VIII to Protocol 1 Form for application for a derogation

ANNEX IX to Protocol 1 List working or processing conferring the character of ACP origin on a product obtained when working or processing is carried out on textile materials originating in developing countries referred to in Article 6(11) of this Protocol

ANNEX X to Protocol 1 Textile products excluded from the cumulation procedure with certain developing countries referred to in Article 6(11) of this Protocol

ANNEX XI to Protocol 1 Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 3 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

ANNEX XII to Protocol 1 Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 6 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

ANNEX XIII to protocol 1 Products to which Article 6(3) shall not be applicable

ANNEX XIV to Protocol 1 Fishery products to which Article 6(3) shall temporarily not be applicable

ANNEX XV to Protocol 1 Joint declaration on cumulation

PROTOCOL 2 on the implementation of Article 9

Protocol 3 containing the text of Protocol 3 on ACP sugar

ANNEX to Protocol 3 Declarations on Protocol 3

ANNEX to Protocol 3

ANNEX to Protocol 3

ANNEX to Protocol 3

ANNEX to Protocol 3

ANNEX to protocol 3

PROTOCOL 4 on beef and veal

Protocol 5 The Second Banana Protocol

ANNEX VI : LIST OF LDLICs

PROTOCOLS

Protocol 1 on the operating expenditure of the joint institutions

Protocol 2 on privileges and immunities

Chapter 1 Persons taking part in the work of the Agreement

Chapter 2 Property, funds and assets of the Council of ACP Ministers

Chapter 3 Official communications

Chapter 4 Staff of the Secretariat of the ACP States

Chapter 5 Commission Delegations in the ACP States

Chapter 6 General provisions

PROTOCOL 3 ON SOUTH AFRICA

ANNEX I : FINANCIAL PROTOCOL

1. For the purposes set out in this Agreement and for a period of five years commencing 1 March 2000, the overall amount of the Community's financial assistance to the ACP States shall be EUR 15 200 million.

2. The Community's financial assistance shall comprise an amount up to EUR 13 500 million from the 9th EDF.

3. The 9th EDF shall be allocated between the instruments of co-operation as follows:

(a) EUR 10 000 million in the form of grants shall be reserved for an envelope for support for long-term development. This envelope shall be used to finance national indicative programmes in accordance with Articles 1 to 5 of Annex IV "Implementation and management procedures" to this Agreement. From the envelope for support for long-term development :

i) EUR 90 million shall be reserved for the financing of the budget of the Centre for the Development of Enterprise (CDE);

ii) EUR 70 million shall be reserved for the financing of the budget of the Centre for the Development of Agriculture (CTA); and

iii) an amount not exceeding EUR 4 million shall be reserved for the purposes referred to in Article 17 of this Agreement (Joint Assembly).

(b) EUR 1 300 million in the form of grants shall be reserved for the financing of support for regional co-operation and integration of the ACP States in accordance with Articles 6 to 14 of Annex IV "Implementation and management procedures" to this Agreement.

(c) EUR 2 200 million shall be allocated to finance the Investment Facility according to the terms and conditions set out in Annex II "Terms and conditions of financing" to this Agreement without prejudice to the financing of the interest rate subsidies provided for in Article 2 and 4 of Annex II to this Agreement funded from the resources mentioned in Article 3.a of this present Annex.

4. An amount of up to EUR 1 700 million shall be provided from the European Investment Bank in the form of loans made from its own resources. These resources shall be granted for the purposes set out in Annex II "Terms and conditions of financing" to this Agreement in accordance with the conditions provided for by its statutes and the relevant provisions of the terms and conditions for investment financing as laid down in the aforementioned Annex. The Bank may, from the resources it manages, contribute to the financing of regional projects and programmes.

5. Any balances remaining from previous EDF on the date of entry into force of this Financial Protocol, as well as any amounts that shall be decommitted at a later date from ongoing projects under these Funds, shall be transferred to the 9th EDF and shall be used in accordance with the conditions laid down in this Agreement. Any resources thus transferred to the 9th EDF that previously had been allocated to the indicative programme of an ACP State or region shall remain allocated to that State or region. The overall amount of this present Financial Protocol, supplemented by the transferred balances from previous EDFs, will cover the period of 2000 - 2007.

6. The Bank shall administer the loans made from its own resources, as well as the operations financed under the Investment Facility. All other resources of this Agreement shall be administered by the Commission.

7. Before the expiry of this Financial Protocol, the Parties shall assess the degree of realisation of commitments and disbursements. This assessment shall constitute the basis for re-evaluating the overall amount of resources as well for evaluating the need for new resources to support financial co-operation under this Agreement.

8. In the event of the funds provided for in any of the instruments of the Agreement being exhausted before the expiry of this financial protocol, the joint ACP-EU Council of Ministers shall take the appropriate measures.

ANNEX II : TERMS AND CONDITIONS OF FINANCING

Chapter 1 Investment financing

Article 1

The terms and conditions of financing in relation to the operations of the Investment Facility, the loans from own resources of the European Investment Bank and special operations shall be as laid down in this Chapter. These resources may be channelled to eligible enterprises, either directly or indirectly, through eligible investment funds and/or financial intermediaries.

Article 2 Resources of the Investment Facility

1. The resources of the Facility may be used, inter alia, to:

(a) provide risk capital in the form of:

i) equity participation in ACP enterprises, including financial institutions;

ii) quasi-capital assistance to ACP enterprises, including financial institutions; and

iii) guarantees and other credit enhancements which may be used to cover political and other investment-related risks, both for foreign and local investors or lenders.

(b) provide ordinary loans.

2. Equity participation shall normally be for non-controlling minority holdings and shall be remunerated on the basis of the performance of the project concerned.

3. Quasi-capital assistance may consist of shareholders' advances, convertible bonds, conditional, subordinated and participating loans or any other similar form of assistance. Such assistance may consist in particular of:

(a) conditional loans, the servicing and/or the duration of which shall be linked to the fulfilment of certain conditions with regard to the performance of the project; in the specific case of conditional loans for pre-investment studies or other project-related technical assistance, servicing may be waived if the investment is not carried out;

(b) participating loans, the servicing and/or the duration of which shall be linked to the financial return of the project; and

(c) subordinated loans, which shall be repaid only after other claims have been settled.

4. The remuneration of each operation shall be specified when the loan is made. However:

(a) in the case of conditional or participating loans, the remuneration shall normally comprise a fixed interest rate of not more than 3% and a variable component related to the performance of the project; and

(b) in the case of subordinated loans, the interest rate shall be market related.

5. Guarantees shall be priced so as to reflect the risks insured and the particular characteristics of the operation.

6. The interest rate of ordinary loans shall comprise a reference rate applied by the Bank for comparable loans with the same terms and conditions as to grace and repayment periods and a mark up determined by the Bank.

7. Ordinary loans may be extended on concessional terms and conditions in the following cases:

(a) for infrastructure projects in the Least Developed Countries or in post-conflict countries that are prerequisites for private sector development. In such cases, the interest rate of the loan will be reduced by 3%; and

(b) for projects which involve restructuring operations in the framework of privatisation or for projects with substantial and clearly demonstrable social or environmental benefits. In such cases, loans may be extended with an interest rate subsidy the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest rate subsidy shall not be higher than 3%.

The final interest rate shall, in any case, never be less than 50% of the reference rate.

8. The funds to be provided for these concessional purposes will be made available from the Investment Facility and shall not exceed 5% of the overall amount allocated for investment financing by the Investment Facility and by the Bank from its own resources.

9. Interest subsidies may be capitalised or may be used in the form of grants to support project-related technical assistance, particularly for financial institutions in the ACP countries.

Article 3 Operations of the Investment Facility

1. The Facility shall operate in all economic sectors and support investments of private and commercially run public sector entities, including revenue generating economic and technological infrastructure critical for the private sector. The Facility shall:

(a) be managed as a revolving fund and aim at being financially sustainable. Its operations shall be on market-related terms and conditions and shall avoid creating distortions on local markets and displacing private sources of finances; and

(b) endeavour to have a catalytic effect by encouraging the mobilisation of long-term local resources and attracting foreign private investors and lenders to projects in the ACP States.

2. On expiry of the Financial Protocol, and in the absence of a specific decision by the Council of Ministers, the cumulative net reflows to the Investment Facility shall be carried over to the next Protocol.

Article 4 EIB own resource loans

1. The Bank shall:

(a) contribute, through the resources it manages, to the economic and industrial development of the ACP States on a national and regional basis; and to this end, finance as a priority productive projects and programmes or other investments aimed at promoting the private sector in all economic sectors;

(b) establish close co-operation links with national and regional development banks and with banking and financial institutions of the ACP States and of the EU; and

(c) in consultation with the ACP State concerned, adapt the arrangements and procedures for implementing development finance co-operation, as set out in this Agreement, if necessary, to take account of the nature of the projects and programmes and to act in accordance with the objectives of this Agreement, within the framework of the procedures laid down by its statute.

2. Loans from the Bank's own resources shall be granted under the following terms and conditions :

(a) the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency, and repayment period on the day of signature of the contract or on the date of disbursement;

(b) however :

i) in principle, public sector projects shall be eligible for an interest rate subsidy of 3%;

ii) private sector projects falling into the categories specified in Article 2.7 (b) of the present Annex shall be eligible for interest rates subsidies on the same terms as those specified in article 2.7(b).

The final interest rate shall, in any case, never be less than 50% of the reference rate.

(c) the amount of the interest rate subsidy calculated in terms of its value at the times of disbursement of the loan shall be charged against the interest subsidy allocation of the Investment Facility as defined in Article 2.8 and 2.9, and paid directly to the Bank; and

(d) the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project, but may not exceed 25 years. These loans shall normally comprise a grace period fixed by reference to the construction period of the project.

3. For investments financed by the Bank from its own resources in public sector companies, specific project-related guarantees or undertakings may be required from the ACP State concerned.

Article 5 Conditions for foreign exchange rate risk

In order to minimise the effects of exchange rate fluctuations, the problems of exchange rate risk shall be dealt with in the following way:

a) in the case of equity participation designed to strengthen an enterprise's own funds, the exchange rate risk shall, as a general rule, be borne by the Facility;

b) in the case of risk capital financing for small-and medium-sized enterprises, the exchange rate risk shall, as a general rule, be shared by the Community, on the one part, and by the other parties involved, on the other. On average, the foreign exchange rate risk shall be shared equally; and

c) where feasible and appropriate, particularly in countries characterised by macroeconomic and financial stability, the Facility will endeavour to extend loans in local ACP currencies, thus de facto taking the foreign exchange risk.

Article 6 Conditions for foreign exchange transfer

The ACP States concerned shall, in respect of operations under the Agreement, and in respect of which they have given their written approval within the framework of this Agreement:

a) grant exemption from all national or local duties, fiscal charges on interest, commission and amortisation of loans due in accordance with the law or laws of the ACP State or States concerned;

b) place at the disposal of the beneficiaries the currency necessary for the payment of interest, commission and the amortisation of loans due in terms of financing contracts granted for the implementation of projects and programmes on their territories; and

c) make available to the Bank the foreign currency necessary for the transfer of all sums received by it in national currency at the exchange rate applicable between the Euro or other currencies of transfer and the national currency at the date of the transfer. These include all forms of remuneration, such as, inter alia, interest, dividends, commissions and fees, as well as the amortisation of loans and the proceeds from the sale of shares due in terms of financing contracts granted for the implementation of projects and programmes on their territories.

Chapter 2 Special operations

Article 7

1. Co-operation shall support from the grant allocation:

(a) low-income housing to promote long-term development of the housing sector, including secondary mortgage facilities;

(b) micro-finance to promote SMEs and micro-enterprises; and

(c) capacity building to strengthen and facilitate the effective participation of the private sector in social and economic development.

2. The ACP-EU Council of Ministers shall, after the signature of this Agreement and on a proposal by the ACP-EC Development Finance Co-operation Committee, decide on the modalities and the amount of resources allocated from the long-term development envelope to attain these objectives.

Chapter 3 Financing for short-term fluctuations in export earnings

Article 8

1. The Parties recognise that losses of export earnings as a result of short-term fluctuations may jeopardise the development financing requirements and the implementation of macroeconomic and sectoral policies. The degree of dependence of an ACP State's economy on export of goods, and in particular from agricultural and mining products shall, therefore, be a criterion for determining the allocation of long-term development.

2. In order to mitigate the adverse effects of instability of export earnings and safeguard the development programme jeopardised by the drop in revenue, additional financial support may be mobilised from the programmable resources for the country's long-term development on the basis of Articles 9 and 10 of this Annex.

Article 9 Eligibility criteria

1. Eligibility for additional resources shall be established by:

(a) a 10 % (2% in the case of least-developed countries) loss of export earnings from goods compared with the arithmetical average of the earnings in the first three years of the first four years preceding the application year;

a 10 % (2% in the case of least-developed countries ) loss of export earnings from the total of agricultural or mineral products compared with the arithmetical average of the earnings in the first three years of the first four years preceding the application year for countries where the agricultural or mineral export revenues represent more than 40 % of total export revenues from goods; and

(b) a 10 % worsening in the programmed public deficit programmed for the year in question or forecast for the following year.

2. Entitlement to additional support shall be limited to four successive years.

3. The additional resources shall be reflected in the public accounts of the country concerned. They shall be utilised in accordance with programming rules and methods including the specific provisions in Annex IV "Implementation and management procedures", on the basis of agreements drawn up in advance between the Community and the ACP State concerned in the year following the application. By agreement of both parties the resources may be used to finance programmes included in national budget. However a part of the additional resources may also be set aside for specific sectors.

Article 10 Advances

The system for allocating additional resources shall provide for advances to cover any delays in obtaining consolidated trade statistics and to ensure that the resources in question can be included in the budget of the year following the application year. Advances shall be mobilised on the basis of provisional export statistics drawn up by the government and submitted to the Commission in advance of the official final consolidated statistics. The maximum advance shall be 80 % of the estimated amount of additional resources for the application year. The amounts thus mobilised shall be adjusted by common agreement between the Commission and the government in the light of final consolidated export statistics and the final figure of the public deficit.

Article 11

The provisions in this Annex shall be subject to review at the latest after two years of operation and subsequently at the request of either party..

Chapter 4 Other provisions

Article 12 Current payments and capital movements

1. Without prejudice to paragraph 3 hereafter, the Parties undertake to impose no restrictions on any payments, in freely convertible currency, on the current account of balance of payments between residents of the Community and of the ACP States.

2. With regard to transactions on the capital account of balance of payments, the Parties undertake to impose no restrictions on the free movement of capital relating to direct investments made in companies formed in accordance with the law of the host country and investments made in accordance with this Agreement, and the liquidation or repatriation of these investments and of any profit stemming therefrom.

3. Where one or more ACP State or one or more Member State of the Community is in serious balance of payments difficulties, or under threat thereof, the ACP State, the Member State or the Community may, in accordance with the conditions established under the GATT, GATS and Article VIII and XIV of the Articles of Agreement of the International Monetary Fund, adopt restrictions on current transactions which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Party taking the measures shall inform the other Parties forthwith and shall submit to them as soon as possible a timetable for the elimination of the measures concerned.

Article 13 Qualification and treatment of business entities

As regards arrangements that may be applied in matters of establishment and provision of services, the ACP States, on the one hand, and the Member States, on the other, shall treat nationals and companies or firms of the ACP States and nationals and companies or firms of the Member States respectively on a non-discriminatory basis. However, if, for a given activity, an ACP State or a Member State is unable to provide such treatment, the ACP State or the Member State, as the case may be, shall not be bound to accord such treatment for that activity to the nationals and companies or firms of the State concerned.

Article 14 Definition of 'companies and firms'

1. For the purpose of this Agreement, 'companies or firms of a Member State or an ACP State' mean companies or firms constituted under civil or commercial law, including corporations, whether public or otherwise, co-operative societies and other legal persons and partnerships governed by public or private law, save for those which are non-profit-making, formed in accordance with the law of a Member State or an ACP State and whose statutory office, central administration or principal place of business is a Member State or an ACP State.

2. However, a company or firm having only its statutory office in a Member State or an ACP State must be engaged in an activity which has an effective and continuous link with the economy of that Member State or ACP State.

Chapter 5 investment protection agreements

Article 15

1. When implementing the provisions of Article 78 of this Agreement, the parties shall take into account the following principles :

(a) a Contracting State may request where appropriate, the negotiation of an investment promotion and protection agreement with another Contracting State;

(b) the States party to such agreements shall practise no discrimination between Contracting States party to this Agreement or against each other in relation to third countries when opening negotiations for concluding, applying and interpreting bilateral or multilateral investment promotion and protection agreements;

(c) the Contracting States shall have the right to request a modification or adaptation of the non-discriminatory treatment referred to above when international obligations or changed circumstances so necessitate;

(d) the application of the principles referred to above does not purport to and cannot in practice infringe the sovereignty of any Contracting Party to the Agreeement; and

(e) the relation between the date of entry into force of any agreement negotiated, provisions for the settlement of disputes and the date of the investments concerned will be set out in the said agreement, account being taken of the provisions set out above. The Contracting Parties confirm that retroactivity shall not apply as a general principle unless Contracting States stipulate otherwise.

2. With a view to facilitating the negotiation of bilateral agreements on investment promotion and protection, the Contracting Parties agree to study the main clauses of a model protection agreement. The study, drawing on the provisions of the existing bilateral agreements between the States Parties, will give particular attention to the following issues:

(a) legal guarantees to ensure fair and equitable treatment and protection of foreign investors;

(b) the most-favoured-investor clause;

(c) protection in the event of expropiation and nationalisation;

(d) the transfer of capital and profits, and

(e) international arbitration in the event of disputes between investor and host State.

3. The Contracting Parties agree to study the capacity of the guarantee systems to give a positive answer to the specific needs of Small and Medium Enterprises of insuring their investments in ACP States. The studies referred to above shall be started as soon as possible after the signing of the Agreement. The result of these studies shall be submitted, upon completion to the ACP-EC Development Finance Co-operation Committee for consideration and appropriate action.

ANNEX III : INSTITUTIONAL SUPPORT - CDE AND CTA

Article 1

Co-operation shall support the institutional mechanisms that provide assistance for businesses and enterprises and promote agriculture and rural development. In this context, co-operation shall help to:

a) strengthen and enhance the role of the Centre for Development of Enterprise (CDE) so as to provide the ACP private sector with the necessary support in the promotion of private sector development activities; and

b) strengthen and reinforce the role of the Technical Centre for Agriculture and Rural Co-operation (CTA) in ACP institutional capacity development, particularly information management, in order to improve access to technologies for increasing agricultural productivity, commercialisation, food security and rural development.

Article 2 CDE

1. The CDE shall support the implementation of private-sector development strategies in the ACP countries by providing non-financial services to ACP companies and businesses and support to joint initiatives set up by economic operators of the Community and of the ACP States.

2. The CDE shall aim to assist private ACP enterprises to become more competitive in all sectors of the economy. It shall in particular:

(a) facilitate and promote business co-operation and partnerships between ACP and EU enterprises;

(b) assist with the development of business support services, through support for capacity building in private sector owned organizations or support for providers of technical, professional, management, commercial and training support services;

(c) provide assistance for investment promotion activities, such as investment promotion organisations, organisation of investment conferences, training programmes, strategy workshops and follow-up investment promotion missions; and

(d) support for initiatives that contribute to develop and transfer technologies and know-how and best practices on all aspects of business management.

3. The CDE shall also:

(a) inform ACP private sector about the provisions of the Agreement;

(b) diffuse information among local ACP private sector about the product quality and standards required in external markets; and

(c) provide information to European companies and private sector organizations on business opportunities and modalities in ACP countries.

4. The CDE shall extend its support for enterprises through qualified and competent national and/or regional service-providing intermediaries.

5. The activities of the CDE shall be based on the concept of co-ordination, complementarity and added value in respect of any private sector development initiatives taken by public or private entities. The CDE shall exercise selectivity in undertaking its tasks.

6. The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall after the signature of this Agreement:

(a) lay down the statutes and rules of procedures of the Centre, including its supervisory bodies;

(b) lay down the statutes, financial and staff regulations;

(c) supervise the work of the bodies of the Centre; and

(d) lay down the rules of operation and the procedures for the adoption of the Centre's budget.

7. The Committee of Ambassadors shall, in accordance with the procedures and criteria determined by it, appoint the members of the bodies of the Centre.

8. The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance co-operation.

Article 3 CTA

1. The mission of the CTA shall be to strengthen policy and institutional capacity development and information and communication management capacities of ACP agricultural and rural development organisations. It shall assist such organisations in formulating and implementing policies and programmes to reduce poverty, promote sustainable food security, preserve the natural resource base, and thus contribute to building self-reliance in ACP rural and agricultural development.

2. The CTA shall:

(a) develop and provide information services and ensure better access to research, training and innovations in the spheres of agricultural and rural development and extension, in order to promote agriculture and rural development; and

(b) develop and reinforce ACP capacities in order to:

i) improve the formulation and management of agricultural and rural development policies and strategies at national and regional levels including improved capacity for data collection, policy research, analysis and formulation;

ii) improve the information and communication management, in particular within the National Agricultural Strategy;

iii) promote effective intra-institutional Information and Communication Management (ICM) for performance monitoring, as well as consortia with regional and international partners;

iv) promote decentralised ICM at local and national levels;

v) strengthen initiatives via regional co-operation; and

vi) develop approaches for assessing impact of policy on agricultural and rural development.

3. The Centre shall support regional initiatives and networks and shall progressively share capacity development programmes with appropriate ACP organisations. To this end, the Centre shall support decentralized regional information networks. Such networks shall be built up gradually and efficiently.

4. The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall after the signature of this Agreement:

(a) lay down the statutes and rules of procedures of the Centre, including its supervisory bodies;

(b) lay down the statutes, financial and staff regulations;

(c) supervise the work of the bodies of the Centre; and

(d) lay down the rules of operation and the procedures for the adoption of the Centre's budget.

5. The Committee of Ambassadors shall, in accordance with the procedures and criteria determined by it, appoint the members of the bodies of the Centre.

6. The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance co-operation.

ANNEX IV : IMPLEMENTATION AND MANAGEMENT PROCEDURES

Chapter 1 Programming (national)

Article 1

Operations financed by grants within the framework of this Agreement shall be programmed at the beginning of the period covered by the Financial Protocol. Programming for this purpose shall mean:

a) the preparation and development of a Country Support Strategy (CSS) based on the country's own medium-term development objectives and strategies;

b) a clear indication from the Community of the indicative programmable financial allocation from which the country may benefit during the five-year period as well as any other relevant information;

c) the preparation and adoption of an indicative programme for implementing the CSS; and

d) a review process covering the CSS, the indicative programme and the volume of resources allocated to it.

Article 2 Country Support Strategy

The CSS shall be prepared by the ACP State and the EU following consultations with a wide range of actors in the development process, and shall draw on lessons learned and best practices. Each CSS shall be adapted to the needs and respond to the specific circumstances of each ACP State. The CSS shall be an instrument to prioritise activities and to build local ownership of co-operation programmes. Any divergences between the country's own analysis and that of the Community shall be noted. The CSS shall include the following standard elements:

a) an analysis of the political, economic and social country context, constraints, capacities and prospects including an assessment of basic needs, such as income per capita, population size and social indicators, and vulnerability;

b) a detailed outline of the country's medium-term development strategy, clearly defined priorities and expected financing requirements;

c) an outline of relevant plans and actions of other donors present in the country, in particular including those of the EU Member States in their capacity as bilateral donors;

d) response strategies, detailing the specific contribution the EU can provide. These shall, to the extent possible, enable complementarity with operations financed by the ACP State itself and by other donors present in the country; and

e) a definition of the nature and scope of the most appropriate support mechanisms to be applied in implementing the above strategies.

Article 3 Resource allocation

1. Resource allocation shall be based on needs and performance, as defined in this Agreement. In this context:

(a) needs shall be assessed on the basis of criteria pertaining to per capita income, population size, social indicators and level of indebtedness, export earning losses and dependence on export earnings, in particular from the sectors of agriculture and mining. Special treatment shall be accorded to the least developed ACP States and the vulnerability of island and landlocked states shall duly be taken into account. In addition, account shall be taken of the particular difficulties of post-conflict countries; and

(b) performance shall be assessed in an objective and transparent manner on the basis of the following parameters: progress in implementing institutional reforms, country performance in the use of resources, effective implementation of current operations, poverty alleviation or reduction, sustainable development measures and macroeconomic and sectoral policy performance.

2. The allocated resources shall comprise two elements:

(a) an allocation to cover macroeconomic support, sectoral policies, programmes and projects in support of the focal or non focal areas of Community assistance; and

(b) an allocation to cover unforeseen needs such as emergency assistance where such support cannot be financed from the EU budget, contributions to internationally agreed debt relief initiatives and support to mitigate adverse effects of instability in export earnings.

3. This indicative amount shall facilitate the long-term programming of Community aid for the country concerned. Together with the uncommitted balances of resources allocated to the country under previous EDF, and wherever possible Community budget resources, these allocations shall be the basis for the preparation of the indicative programme for the country concerned.

4. Provision will be made for those countries which, due to exceptional circumstances, can not access normal programmable resources.

Article 4 Preparation and adoption of the indicative programme

1. Upon receipt of the information referred to above, each ACP State shall draw up and submit to the Community a draft indicative programme on the basis of and consistent with its development objectives and priorities as expressed in the CSS. The draft indicative programme shall contain:

(a) the focal sector, sectors or areas on which support should be concentrated;

(b) the most appropriate measures and operations for attaining the objectives and targets in the focal sector, sectors or areas;

(c) the resources reserved for projects and programmes outside the focal sector(s) and/or the broad outlines of such activities, as well as an indication of the resources to be deployed for each of these elements;

(d) identification of eligible non-state actors and the resources allocated for non-state actors;

(e) proposals for regional projects and programmes; and

(f) a reserve for insurance against possible claims and to cover cost increases and contingencies.

2. The draft indicative programme shall, as appropriate, contain the resources reserved to reinforce human material and institutional ACP capacity for preparing and implementing national and regional indicative programmes and for improving the management of the ACP States' public investment projects cycle.

3. The draft indicative programme shall be the subject of an exchange of views between the ACP State concerned and the Community. The indicative programme shall be adopted by common agreement between the Community and the ACP State concerned. It shall, when adopted, be binding on both the Community and that State. This indicative programme shall be annexed to the CSS and shall in addition contain:

(a) specific and clearly identified operations, especially those that can be committed before the next review;

(b) a timetable for implementation and review of the indicative programme, including commitments and disbursements of resources; and

(c) the parameters and criteria for the reviews.

4. The Community and the ACP State concerned shall take all necessary measures to ensure that the programming process is completed within the shortest possible time and, save in exceptional circumstances, within twelve months of the signing of the Financial Protocol. In this context, the preparation of the CSS and the indicative programme must be part of a continuous process leading to the adoption of a single document.

Article 5 Review process

1. Financial co-operation between the ACP State and the Community shall be sufficiently flexible to ensure that operations are kept constantly in line with the objectives of this Agreement and to take account of any changes occurring in the economic situation, priorities and objectives of the ACP State concerned. In this context, the National Authorizing Officer and the Head of Delegation shall:

(a) annually undertake an operational review of the indicative programme; and

(b) undertake a mid-term and end-of-term review of the CSS and the indicative programme in the light of current needs and performance.

2. In exceptional circumstances referred to in the provisions on humanitarian and emergency assistance, the review can be carried out on the demand of either party.

3. The National Authorizing Officer and the Head of Delegation shall:

(a) take all necessary measures to ensure adherence to the provisions of the indicative programme, including ensuring that the timetable of commitments and disbursements agreed at the time of programming is adhered to; and

(b) determine any causes of delay in implementation and propose suitable measures to remedy the situation.

4. The annual operational review of the indicative programme shall consist of a joint assessment of the implementation of the programme and take into account the results of relevant activities of monitoring and evaluation. This review shall be conducted locally and shall be finalised between the National Authorizing Officer and the Head of Delegation within a period of 60 days. It shall in particular cover an assessment of:

(a) the results achieved in the focal sector(s) measured against the identified targets and impact indicators and sectoral policy commitments;

(b) projects and programmes outside the focal sector(s)and/or in the framework of multi-annual programmes;

(c) the use of resources set aside for non-state actors;

(d) the effectiveness in implementation of current operations and the extent to which the timetable for commitments and payments have been respected; and

(e) an extension of the programming perspective for the following years.

5. The National Authorizing Officer and the Head of Delegation shall submit the report on the conclusion of the annual review to the Development Finance Committee, within 30 days of the completion of the operational review. The Committee shall examine the report in accordance with its responsibilities and powers under the Agreement.

6. In the light of the annual operational reviews, the National Authorising Officer and the Head of Delegation may at the mid-term and end-of-term reviews, and within the above time frames, review and adapt the CSS:

(a) where operational reviews indicate specific problems; and/or

(b) in the light of changed circumstances of an ACP State.

Such reviews shall be completed within a further period of 30 days of the finalisation of the mid-term and end-of-term reviews. The end of Financial Protocol review shall also include adaptation for the new financial protocol in terms of both resource allocation and preparation for the next programme.

7. Following the completion of mid-term and end-of-term reviews, the Community may revise the resource allocation in the light of current needs and performance of the ACP State concerned.

Chapter 2 Programming and preparation (regional)

Article 6 Participation

1. Regional co-operation shall cover operations benefiting and involving:

(a) two or more or all ACP States; and / or

(b) a regional body of which at least two ACP States are members.

2. Regional co-operation can also involve Overseas Countries and Territories and outermost regions. The funding to enable participation of these territories shall be additional to funds allocated to the ACP States under the Agreement.

Article 7 Regional Programmes

The ACP States concerned shall decide on the definition of geographical regions. To the maximum extent possible, regional integration programmes should correspond to programmes of existing regional organisations with a mandate for economic integration. In principle, in case the membership of several relevant regional organisations overlaps, the regional integration programme should correspond to the combined membership of these organisations. In this context, the Community will provide specific support from regional programmes to groups of ACP States who are committed to negotiate economic partnership agreements with the EU

Article 8 Regional Programming

1. Programming shall take place at the level of each region. The programming shall be a result of an exchange of views between the Commission and the duly mandated regional organisation(s) concerned, and in the absence of such a mandate, the National Authorizing Officers of the countries in that region. Where appropriate, programming may include a consultation with eligible non-state actors.

2. Programming for this purpose shall mean:

(a) preparation and development of a Regional Support Strategy (RSS) based on the region's own medium-term development objectives and strategies;

(b) a clear indication from the Community of the indicative resource allocation from which the region may benefit during the five-year period as well as any other relevant information;

(c) preparation and adoption of a Regional Indicative Programme (RIP) for implementing the RSS; and

(d) a review process covering the RSS, the RIP and the volume of resources allocated to each region.

3. The RSS shall be prepared by the Commission and the duly mandated regional organisation(s) in collaboration with the ACP States in the region concerned. The RSS will be an instrument to prioritise activities and to build local ownership of supported programmes. The RSS shall include the following standard elements:

(a) an analysis of the political, economic and social context of the region;

(b) an assessment of the process and prospects of regional economic integration and integration into the world economy;

(c) an outline of the regional strategies and priorities pursued and the expected financing requirements;

(d) an outline of relevant activities of other external partners in regional co-operation; and

(e) an outline of the specific EU contribution towards achievement of the goals for regional co-operation and integration, complementary to the extent possible operations financed by the ACP States themselves and by other external partners, particularly the EU Member States.

Article 9 Resource allocation

At the beginning of the period covered by the Financial Protocol, each region shall receive from the Community an indication of the volume of resources from which it may benefit during a five-year period. The indicative resource allocation shall be based on an estimate of need and the progress and prospects in the process of regional co-operation and integration. In order to achieve an adequate scale and to increase efficiency, regional and national funds may be mixed for financing regional operations with a distinct national component.

Article 10 Regional Indicative Programme

1. On the basis of the resource allocation indicated above, the duly mandated regional organisation(s), and in the absence of such a mandate, the National Authorizing Officers of the countries in the region, shall draw up a draft Regional Indicative Programme. In particular, the draft programme shall specify:

(a) the focal sectors and themes of Community aid;

(b) the most appropriate measures and operations to achieve the objectives set for those sectors and themes; and

(c) the projects and programmes enabling those objectives to be attained, insofar as they have been clearly identified as well as an indication of the resources to be deployed for each of these elements and a timetable for their implementation.

2. The Regional Indicative Programmes shall be adopted by common agreement between the Community and the ACP States concerned.

Article 11 Review process

Financial co-operation between each ACP region and the Community shall be sufficiently flexible to ensure that operations are kept constantly in line with the objectives of this Agreement and to take account of any changes occurring in the economic situation, priorities and objectives of the region concerned. A mid-term and end-of-protocol review of the regional indicative programmes shall be undertaken to adapt the indicative programme to evolving circumstances and to ensure that they are correctly implemented. Following the completion of mid-term and end-of-term reviews, the Community may revise the resource allocation in the light of current needs and performance.

Article 12 Intra-ACP cooperation

At the beginning of the period covered by the Financial Protocol, the Community shall indicate to the ACP Council of Ministers the part of the funds earmarked for regional operations that shall be set aside for operations that benefit many or all ACP States. Such operations may transcend the concept of geographic location.

Article 13 Requests for financing

1. Requests for financing of regional programmes shall be submitted by:

(a) a duly mandated regional body or organisation; or

(b) a duly mandated sub-regional body, organisation or an ACP State in the region concerned at the programming stage, provided that the operation has been identified in the RIP.

2. Requests for intra-ACP programmes shall be submitted by:

(a) at least 3 mandated regional bodies or organisations belonging to different geographic regions, or the National Authorising Officers of such regions; or

(b) the ACP Council of Ministers, or, by specific delegation, the ACP Committee of Ambassadors; or

(c) international organisations carrying out operations that contribute to the objectives of regional co-operation and integration, subject to prior approval by the ACP Committee of Ambassadors.

Article 14 Procedures for implementation

1. Regional programmes shall be implemented by the requesting body or any other duly authorised institution or body.

2. Intra-ACP programmes shall be implemented by the requesting body or their duly authorised agent. In the absence of a duly authorised implementing body, and without prejudice to ad hoc projects and programmes managed by the ACP Secretariat, the Commission shall be responsible for the implementation of intra-ACP operations.

3. Account being taken of the objectives and inherent characteristics of regional co-operation, operations undertaken in this sphere shall be governed by the procedures established for development finance co-operation where applicable.

Chapter 3 Project implementation

Article 15 Project identification, preparation and appraisal

1. Projects and programmes that have been presented by the ACP State shall be subject to joint appraisal. The ACP-EC Development Finance Co-operation Committee shall develop the general guidelines and criteria for appraisal of projects and programmes.

2. Project or programme dossiers prepared and submitted for financing must contain all information necessary for the appraisal of the projects or programmes or, where such projects and programmes have not been completely defined, provide the broad outlines necessary for their appraisal. Such dossiers shall be officially transmitted to the Community by the ACP States or the other eligible beneficiaries in accordance with this Agreement.

3. Project and programme appraisal shall, take due account of national human resource constraints and ensure a strategy favourable to the promotion of such resources. It shall also take into account the specific characteristics and constraints of each ACP State.

Article 16 Financing proposal and decision

1. The conclusions of the appraisal shall be summarised in a financing proposal drawn up by the Community in close collaboration with the ACP State concerned. This financing proposal shall be submitted for approval by the Commission's decision-making body.

2. The financing proposal shall contain an advance timetable for the technical and financial implementation of the project or programme, including multi-annual programmes and global allocations for operations of a small financial scale, and shall deal with the duration of the different phases of implementation. The financing proposal shall:

(a) take into account the comments of the ACP State or States concerned; and

(b) be forwarded simultaneously to the ACP State or States concerned and the Community.

3. The Commission shall finalise the financing proposal and forward it, with or without amendment, to the Community's decision-making body. The ACP State or States concerned shall be given an opportunity to comment on any amendment of substance which the Commission intends to make to the document. These comments shall be reflected in the amended financing proposal.

4. The Community's decision-making body shall communicate its decision within 120 days from the date of communication of the financial proposal referred to above.

5. Where the financing proposal is not adopted by the Community, the ACP State or States concerned shall be informed immediately of the reasons for that decision. In such a case, the representatives of the ACP State or States concerned may, within 60 days thereafter, request either:

(a) that the matter be referred to the ACP-EC Development Finance Co-operation Committee set up under the Agreement; or

(b) that they be given a hearing by the Community's decision-making body.

6. Following such a hearing, a definitive decision to adopt or reject the financing proposal shall be taken by the relevant Community body to which the ACP State or States concerned may forward, before the decision is taken, any facts which may appear necessary to supplement the information available to it.

7. Multi-annual programmes shall, inter alia, finance training, decentralized operations, micro-projects, trade promotion and trade development, sets of operations of a limited scale in a specific sector, project/programme management support and technical co-operation.

8. In cases referred to above, the ACP State concerned may submit to the Head of Delegation a multi-annual programme setting out its broad outlines, the types of actions envisaged and the financial commitment proposed:

(a) the financing decision on each multi-annual programme shall be taken by the Chief Authorizing Officer. The letter from the Chief Authorizing Officer to the National Authorizing Officer notifying such decision shall constitute the financing agreement; and

(b) within the framework of multi-annual programmes thus adopted, the National Authorizing Officer or, when the case arises, the agent of decentralized co-operation which has been delegated functions for this purpose or, in appropriate cases, other eligible beneficiaries shall implement each individual action in accordance with the relevant provisions of this Agreement and the terms of the financing agreement referred to above. Where implementation is to be carried out by agents of decentralized co-operation or other eligible beneficiaries, the National Authorizing Officer and the Head of Delegation shall maintain financial responsibility and monitor the operations regularly with a view to enabling them, inter alia, to carry out their obligations.

9. At the end of each year, the National Authorizing Officer in consultation with the Head of Delegation, shall forward a report to the Commission on the implementation of the multi-annual programmes.

Article 17 Financing agreement

1. Save as otherwise provided for in this Agreement, for any project or programme financed by a grant from the Fund, a financing agreement shall be drawn up between the Commission and the ACP State or States concerned. Where the direct beneficiary is not an ACP State, the Commission shall formalise the financing decision by means of an exchange of letters with the beneficiary concerned.

2. The financing agreement shall be drawn up between the Commission and the ACP State or States concerned within 60 days of the decision of the Community's decision-making body. The agreement shall:

(a) specify, in particular the details of the Fund's financial commitment and the financing arrangements and terms, the general and specific provisions relating to the project or programme concerned and shall also incorporate the advance timetable for the technical implementation of the project or programme contained in the financing proposal; and

(b) make adequate provision for appropriations to cover cost increases and contingencies.

3. Once the financing agreement has been signed, disbursements shall be made in accordance with the financing plan laid down therein. Any unexpended balance left upon closure of the accounts of projects and programmes shall accrue to the ACP State concerned and shall be so specified in the Fund's books. It may be used in the manner laid down in this Agreement for the financing of projects and programmes.

Article 18 Cost over-runs

1. Once it appears that cost over-runs beyond the limit set in the financing agreement are likely to be incurred, the National Authorizing Officer shall, through the Head of Delegation, notify the Chief Authorizing Officer accordingly, as well as of the measures which the National Authorizing Officer intends to take in order to cover such cost over-runs over the allocated appropriations, either by reducing the scale of the project or programme or by calling on national or other non-Community resources.

2. If it is decided by agreement with the Community not to scale down the project or programme or if it is not possible to cover them by other resources, then such over-runs may be financed up to 20% of the financial commitment for the project or programme concerned from the indicative programme.

Article 19 Retroactive financing

1. In order to ensure early project start-up, avoid gaps between sequential projects and prevent delays, the ACP States, in agreement with the Commission, may, on completion of project appraisal and before the financing decision is taken:

(a) issue invitations to tender for all types of contracts, with a suspension clause; and

(b) pre-finance activities linked to the start-up of programmes, preliminary and seasonal work, orders for equipment with long delivery lead times as well as some on-going operations. Such expenditures must satisfy the procedures provided for in the Agreement.

2. These provisions do not prejudge the powers of the Community's decision-making body.

3. Expenditure made by the ACP State in pursuance of this provision shall be retroactively financed under the project or programme, once the financing agreement is signed.

Chapter 4 Competition and preferences

Article 20 Eligibility

Save where a derogation is granted in accordance with the General Regulations or Article 22 below:

a) participation in invitations to tender and the award of the contracts financed by the Fund shall be open on equal terms to:

(i) natural persons, companies or firms or public or semi-public agencies of the ACP States and the Member States;

(ii) co-operative societies and other legal persons governed by public or private law, of the Member States and/or the ACP States; and

(iii) joint ventures or groupings of ACP States and/or Member State's companies or firms.

b) supplies must originate in the Community and/or the ACP States. In this context, the definition of the concept of 'originating products' shall be assessed by reference to the relevant international agreements and supplies originating in the Community shall include supplies originating in the Overseas Countries and Territories.

Article 21 Participation on equal terms

The ACP States and the Commission shall take the necessary measures to ensure the widest possible participation on equal terms in invitations to tender for works, supplies and services contracts, including, as appropriate, measures to:

a) ensure publication of invitations to tender in the Official Journal of the European Communities, the Internet, the Official Journals of all the ACP States and any other appropriate information media;

b) eliminate discriminatory practices or technical specifications which might stand in the way of widespread participation on equal terms;

c) encourage co-operation between the companies and firms of the Member States and of the ACP States;

d) ensure that all the awarding criteria are specified in the tender dossier; and

e) ensure that the tender selected conforms to the requirements of the tender dossier and meets the awarding criteria stated therein.

Article 22 Derogation

1. In order to ensure the optimum cost-effectiveness of the system, natural or legal persons from non-ACP developing countries may be authorized to participate in contracts financed by the Community at the request of the ACP States concerned. The ACP States concerned shall, on each occasion, provide the Head of Delegation with the information needed for the Community to decide on such derogation, with particular attention being given to:

(a) the geographical location of the ACP State concerned;

(b) the competitiveness of contractors, suppliers and consultants from the Member States and the ACP States;

(c) the need to avoid excessive increases in the cost of performance of the contract;

(d) transport difficulties or delays due to delivery times or other similar problems; and

(e) technology that is the most appropriate and best suited to local conditions.

2. Participation by third countries in contracts financed by the Community may also be authorized:

(a) where the Community participates in the financing of regional or inter-regional schemes involving such countries;

(b) in the case of co-financing projects and programmes; and

(c) in the case of emergency assistance.

3. In exceptional cases and in agreement with the Commission, consultancy firms with experts who are nationals of third countries may participate in service contracts.

Article 23 Competition

1. To simplify and streamline the general rules and regulations for competition and preferences for EDF financed operations, contracts shall be awarded through open and restricted procedures as well as framework contract, direct agreement contracts and direct labour as follows:

(a) open international invitation to tender through or after the publication of a procurement notice in accordance with the provisions of this Agreement;

(b) open local invitation to tender where the procurement notice is published exclusively in the beneficiary ACP State;

(c) restricted international invitation to tender where the Contracting Authority invites a limited number of candidates to take part in the call for tender after the publication of a pre-information notice;

(d) direct agreement contracts which involve simplified procedure where the publication of the procurement notice is dispensed with and the Contracting Authority invites a limited number of service providers to present their offers; and

(e) direct labour agreement where contracts are performed through public or semi-public agencies and departments of the beneficiary States concerned.

2. Contracts financed from the Fund shall be concluded according to the following provisions:

(a) works contracts of a value :

i) higher than EUR 5 000 000 shall be awarded in an open international invitation to tender;

ii) between EUR 300 000 and EUR 5 000 000 shall be awarded through an open local invitation to tender; and

iii) lower than EUR 300 000 shall be awarded by direct agreement contract which involves a simplified procedure without publication of a procurement notice.

(b) supply contracts of a value :

i) higher than EUR 150 000 shall be awarded through an open international invitation to tender;

ii) between EUR 30 000 and EUR 150 000 shall be awarded through an open local invitation to tender; and

iii) below EUR 30 000 shall be awarded by direct agreement contract which involves a simplified procedure without publication of a procurement notice.

(c) service contracts of a value :

i) higher than EUR 200 000 shall be awarded through a restricted international tender after publication of a procurement notice; and

ii) below EUR 200 000 shall be awarded by direct agreement contract which involves a simplified procedure or a framework contract.

3. For works, supply and service contracts with a value of EUR 5 000 or less, these can be awarded directly without competition.

4. In case of restricted invitation to tender, a short-list of prospective tenderers shall be drawn up by the ACP State or States concerned in agreement with the Head of Delegation following, where applicable, a call for pre-qualification of tenders based on the publication of a procurement notice.

5. In case of direct-agreement contracts, the ACP State shall enter freely into such discussions as it may consider appropriate with the prospective tenderers whom it has short-listed in accordance with the provisions below and award the contract to the tenderers whom it has selected.

6. The ACP States may request the Commission to negotiate, draw up, conclude and implement service contracts directly on their behalf or through its relevant agency.

Article 24 Direct labour

1. In case of direct labour operations, projects and programmes shall be implemented through public or semi-public agencies or departments of the State or States concerned or by the person responsible for executing the operation.

2. The Community shall contribute to the costs of the department involved by providing the equipment and/or materials that it lacks and/or resources to allow it to acquire additional staff required in the form of experts from within the ACP States concerned or other ACP States. The participation of the Community shall cover only costs incurred by supplementary measures and temporary expenditure relating to execution strictly confined to the requirements of the project in question.

Article 25 Emergency assistance contracts

Contracts under emergency assistance shall be undertaken in such a way as to reflect the urgency of the situation. To this end, for all operations relating to emergency assistance, the ACP State may, in agreement with the Head of Delegation, authorize:

a) the conclusion of contracts by direct agreement;

b) the performance of contracts by direct labour;

c) implementation through specialized agencies; and

d) direct implementation by the Commission.

Article 26 Preferences

Measures shall be taken to encourage the widest participation of the natural and legal persons of ACP States in the performance of contracts financed by the Fund in order to permit the optimization of the physical and human resources of those States. To this end:

a) for works contracts of a value of less than EUR 5 000 000, tenderers of the ACP States, provided that at least one quarter of the capital stock and management staff originates from one or more ACP States, shall be accorded a 10% price preference where tenders of an equivalent economic, technical and administrative quality are compared;

b) for supply contracts, irrespective of the value of the supplies, tenderers of the ACP States who offer supplies of at least 50% in contract value of ACP origin, shall be accorded a 15% price preference where tenders of equivalent economic, technical and administrative quality are compared;

c) in respect of service contracts, given the required competence, preference shall be given to;

(i) experts, institutions or consultancy companies or firms from ACP States where tenders of equivalent economic and technical quality are compared,

(ii) offers submitted by an ACP firm in a consortium with European partners, and

(iii) offers presented by European tenderers with ACP sub-contractors or experts.

d) where subcontracting is envisaged, preference shall be given by the successful tenderer to natural persons, companies and firms of ACP States capable of performing the contract required on similar terms; and

e) the ACP State may, in the invitation to tender, propose to the prospective tenderers the assistance of other ACP States' companies or firms or national experts or consultants selected by mutual agreement. This co-operation may take the form either of a joint venture, or of a subcontract or of on-the-job training of trainees.

Article 27 Award of contracts

1. Without prejudice to article 24 above, the ACP State shall award the contract to the tenderer:

(a) whose tender is found to be responsive to the tender dossier;

(b) for a works or supply contract, who has offered the most advantageous tender as assessed, inter alia, on the basis of :

i) the price, the operating and maintenance costs;

ii) the qualifications of, and the guarantees offered by the tenderers, as well as the technical qualities of the tender, including the offer of an after-sales service in the ACP State; and

iii) the nature of, the conditions and the time limit for executing the contracts, and the adaptation to local conditions.

(c) for a service contract who offers the most advantageous tender taking into account, inter alia, the price, the technical value of the tender, the organization and the methodology proposed for the provision of the services as well as the competence, independence and availability of the personnel proposed.

2. Where two tenders are acknowledged to be equivalent on the basis of the criteria stated above, preference shall be given:

(a) to the tenderer of an ACP State; or

(b) if no such tender is forthcoming, to the tenderer who :

i) permits the best possible use of the physical and human resources of the ACP States;

ii) offers the greatest subcontracting possibilities to ACP companies, firms or natural persons; or

iii) is a consortium of natural persons, companies and firms from ACP States and the Community.

Article 28 General regulations for contracts

1. The award of contracts financed from the resources of the Fund shall be governed by this Annex and the procedures which shall be adopted by decision of the Council of Ministers at the first meeting following the signing of this Agreement, upon the recommendation of the ACP-EC Development Finance Co-operation Committee referred to in this Agreement. These procedures shall respect the provisions of this Annex and the Community's procurement rules for co-operation with third countries.

2. Pending the adoption of these procedures, the current EDF rules as contained in the current general regulations and general conditions of contracts shall apply.

Article 29 General conditions for contracts

Performance of works, supply and service contracts financed from the resources of the Fund shall be governed by:

a) the general conditions applicable to contracts financed by the Fund which shall be adopted by decision of the Council of Ministers at the first meeting following the signing of this Agreement, upon the recommendation of the ACP-EC Development Finance Co-operation Committee referred to in this Agreement; or

b) in the case of co-financed projects and programmes, or where a derogation to third parties has been granted or in accelerated procedures or in other appropriate cases, such other general conditions as may be agreed by the ACP State concerned and the Community, i.e. :

(i) the general conditions for contracts prescribed by the national legislation of the ACP State concerned or its established practices regarding international contracts; or

(ii) any other international general conditions for contracts.

Article 30 Settlement of disputes

Any dispute arising between the authorities of an ACP State and a contractor, supplier or provider of services during the performance of a contract financed by the Fund shall:

a) in the case of a national contract, be settled in accordance with the national legislation of the ACP State concerned; and

b) in the case of a transnational contract be settled either :

(i) if the Parties to the contract so agree, in accordance with the national legislation of the ACP State concerned or its established international practices; or

(ii) by arbitration in accordance with the procedural rules which will be adopted by decision of the Council of Ministers at the first meeting following the signing of this Agreement, upon the recommendation of the ACP-EC Development Finance Co-operation Committee referred to in this Agreement.

Article 31 Tax and customs arrangements

1. The ACP States shall apply to contracts financed by the Community tax and customs arrangements no less favourable than those applied by them to the most favoured States or international development organisations with which they have relations. For the purpose of determining the most-favoured-nation (MFN) treatment, account shall not be taken of arrangements applied by the ACP State concerned to other ACP States, or to other developing countries.

2. Subject to the above provisions the following shall apply to contracts financed by the Community:

(a) the contract shall not be subject in the beneficiary ACP State to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the laws in force in the ACP State and a fee corresponding to the service rendered may be charged for it;

(b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the ACP State concerned, provided that the natural or legal persons who realise such profit and/or income have a permanent place of business in that State, or that the performance of the contract takes longer than six months;

(c) enterprises which must import professional equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the national legislation of the beneficiary ACP State in respect of the said equipment;

(d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary ACP State or States in accordance with its national legislation free of fiscal, import and customs duties and of other charges having equivalent effect where these duties and charges do not constitute remuneration for services rendered;

(e) imports under supply contracts shall be admitted into the beneficiary ACP State without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the ACP State concerned shall be concluded on the basis of the ex-works price of the supplies to which may be added such internal fiscal charges as may be applicable to those supplies in the ACP State;

(f) fuels, lubricants and hydrocarbon binders and, in general, all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the national legislation in force in the beneficiary ACP State; and

(g) personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limit of the national legislation in force in the beneficiary ACP State.

3. Any matter not covered by the above provisions on tax and customs arrangements shall remain subject to the national legislation of the ACP State concerned.

Chapter 5 Monitoring and evaluation

Article 32 Objectives

The objective of monitoring and evaluation shall consist in the regular assessment of development operations (preparation, implementation and subsequent operation) with a view to improving the development effectiveness of on-going and future operations.

Article 33 Modalities

1. Without prejudice to evaluations carried out by the ACP States or the Commission, this work will be done jointly by the ACP State(s) and the Community. The ACP-EC Development Finance Co-operation Committee shall ensure the joint character of the joint monitoring and evaluation operations. In order to assist the ACP-EC Development Finance Co-operation Committee, the Commission and the ACP General Secretariat shall prepare and implement the joint monitoring and evaluations and report to the Committee. The Committee shall, at its first meeting after the signature of the Agreement, fix the operational modalities aimed at ensuring the joint character of the operations and shall, on a yearly basis, approve the work programme.

2. Monitoring and evaluation activities shall notably:

(a) provide regular and independent assessments of the Fund's operations and activities by comparing results with objectives; and thereby

(b) enable the ACP States and the Commission and the Joint Institutions, to feed the lessons of experience back into the design and execution of future policies and operations.

Chapter 6 Management and executing agents

Article 34 The Chief Authorizing Officer

1. The Commission shall appoint the Chief Authorising Officer of the Fund, who shall be responsible for managing the resources of the Fund. The Chief Authorising Officer shall be responsible for commitment, clearance, authorisation and accounting of expenditure under the Fund.

2. The Chief Authorizing Officer shall:

(a) commit, clear and authorize expenditure and keep accounts of commitments and authorizations;

(b) ensure that financing decisions are carried out;

(c) in close co-operation with the National Authorizing Officer, make commitment decisions and financial arrangements that prove necessary to ensure proper execution of approved operations from the economic and technical viewpoints;

(d) prepare the tender dossier before the invitations to tender are issued, for:

(i) open international tender, and

(ii) restricted international invitation to tender with prequalification.

(e) approve the proposals for the placing of contracts subject to the powers exercised by the Head of Delegation under Article 36;

(f) ensure publication in reasonable time of international invitations to tender.

3. The Chief Authorizing Officer shall, at the end of each year, make available a detailed balance sheet of the Fund showing balances of contributions paid into the Fund by the Member States and global disbursements in respect of each financing heading.

Article 35 National Authorizing Officer

1. The Government of each ACP States shall appoint a National Authorising Officer to represent it in all operations financed from the resources of the Fund managed by the Commission and the Bank. The National Authorizing Officer may delegate some of these functions and shall inform the Chief Authorizing Officer of any such delegation. The National Authorising Officer shall:

(a) in close co-operation with the Head of Delegation be responsible for the preparation, submission and appraisal of projects and programmes;

(b) in close co-operation with the Head of Delegation, issue invitations for local open tender, receive tenders, both local and international( open and restricted), preside over the examination of tenders, establish the results of this examination, sign contracts and riders thereto and approve expenditure;

(c) submit, before issuing local open invitations to tender, the invitation to tender dossier to the Head of Delegation who shall give his agreement within 30 days;

(d) complete the evaluation of tenders within the tender validity period taking into consideration the period required for the approval of contracts;

(e) transmit the results of the examination of and a proposal for placing the contract to the Head of Delegation for his approval within the time limits set out in Article 36;

(f) clear and authorize expenditure within the limits of the funds assigned to him; and

(g) during the execution operations, make any adaptation arrangements necessary to ensure the proper execution of approved projects or programmes from the economic and technical viewpoint.

2. The National Authorizing Officer shall, during the execution of operations and subject to the requirement to inform the Head of Delegation, decide on:

(a) technical adjustments and alterations in matters of detail so long as they do not affect the technical solution adopted and remain within the limits of the reserve for adjustments;

(b) alterations to estimates during execution;

(c) transfers from item to item within estimates;

(d) changes of site for multiple-unit projects or programmes where justified on technical, economic or social grounds;

(e) imposition or remission of penalties for delay;

(f) acts discharging guarantors;

(g) purchase of goods, irrespective of their origin, on the local market;

(h) use of construction equipment and machinery not originating in the Member States or ACP States provided there is no production of comparable equipment and machinery in the Member States or ACP States;

(i) subcontracting;

(j) final acceptance, provided that the Head of Delegation is present at provisional acceptance, endorses the corresponding minutes and, where appropriate, is present at the final acceptance, in particular where the extent of the reservations recorded at the provisional acceptance necessitates major additional work; and

(k) hiring of consultants and other technical assistance experts.

Article 36 Head of Delegation

1. The Commission shall be represented in each ACP State or in each regional grouping, which expressly so requests, by a delegation under the authority of a Head of Delegation, with the approval of the ACP State or States concerned. Where a Head of Delegation is appointed to a group of ACP States, appropriate steps shall be taken to ensure that the Head of Delegation is represented by a deputy resident in each of the States in which the Head of Delegation is not resident. The Head of Delegation shall represent the Commission in all spheres of its competence and in all its activities.

1.

2. To this end, and in close co-operation with the National Authorizing Officer, the Head of Delegation shall:

(a) at the request of the ACP State concerned, participate and give assistance in the preparation of projects and programmes and in negotiating technical assistance contracts;

(b) participate in appraising projects and programmes, preparing tender dossiers and seeking ways to simplify project and programme appraisal and implementation procedures;

(c) prepare financing proposals;

(d) approve before the National Authorizing Officer issues them, the local open invitation to tender and the emergency assistance contract dossiers within 30 days of their submission to him by the National Authorizing Officer;

(e) be present at the opening of tenders and receive copies of them and of the results of their examination;

(f) approve, within 30 days, the National Authorizing Officer's proposal for the placing of local open tenders, direct agreement contracts, emergency assistance contracts, service contracts and works contracts with a value less than EUR 5 million and supply contracts with a value less than EUR 1 million;

(g) for all other contracts not covered by the above, approve within 30 days the National Authorising Officer's proposal for the placing of the contract wherever the following conditions are fulfilled:

i) the tender selected is the lowest of those conforming to the requirements of the tender dossier;

ii) the tender selected meets all the selection criteria stated in the tender dossier; and

iii) the tender selected does not exceed the sum earmarked for the contract.

(h) where the conditions set out in paragraph (g) above are not fulfilled, forward the proposal to the Chief Authorizing Officer who shall decide thereon within 60 days of the receipt of the Head of Delegation. Where the price of the selected tender exceeds the sum earmarked for the contract, the Chief Authorising Officer shall, upon giving approval to the award, make the necessary financial commitment;

(i) endorse contracts and estimates in the case of direct labour, riders thereto as well as payment authorizations issued by the National Authorizing Officer;

(j) ensure that the projects and programmes financed from the resources of the Fund managed by the Commission are properly executed from the financial and technical viewpoints;

(k) co-operate with the national authorities of the ACP State where he represents the Commission in evaluating operations regularly;

(l) communicate to the ACP State all information and relevant documents on the procedures for implementing development finance co-operation especially as regards appraisal criteria and tender evaluation criteria; and

(m) on a regular basis, inform the national authorities of Community activities which may directly concern co-operation between the Community and the ACP States.

3. The Head of Delegation shall have the necessary instructions and delegated powers to facilitate and expedite all operations under the Agreement. Any further delegation of administrative and/or financial powers to the Head of Delegation other than described in this Article shall be notified to the National Authorising Officers and the Council of Ministers.

Article 37 Payments and paying agents

1. For the purpose of effecting payments in the national currencies of the ACP States, accounts denominated in the currencies of the Members States or in Euro shall be opened in each ACP State in the name of the Commission with a national public or semi-public financial institution chosen by agreement between the ACP State and the Commission. This institution shall exercise the functions of National Paying Agent.

2. The National Paying Agent shall receive no remuneration for its services and no interest shall be payable by it on deposited funds. The local accounts shall be replenished by the Commission in the currency of one of the Member States or in Euro, based on estimates of future cash requirements, which shall be made sufficiently in advance to avoid the need for pre-financing by ACP States and to prevent delayed disbursements.

3. For the purpose of effecting payments in Euro, accounts denominated in Euro shall be opened in the name of the Commission with financing institutions in the Member States. These institutions shall exercise the functions of Paying Agents in Europe.

4. Payments from the European accounts, which will be executed on the instruction of the Commission or by the Head of Delegation acting on its behalf, may be made in respect of expenditure authorised by the National Authorizing Officer or by the Chief Authorizing Officer with the prior authorisation of the National Authorizing Officer.

5. Within the limits of the funds available in the accounts, the Paying Agents shall make disbursements authorised by the National Authorizing Officer or, as appropriate, the Chief Authorizing Officer, after verifying that the supporting documents provided are substantially correct and in order, and that the discharge given for payment is valid.

6. The procedures for clearance, authorisation and payment of expenditure must be completed within a period of 90 days from the date on which the payment becomes due. The National Authorizing Officer shall process and deliver the payment authorization to the Head of Delegation not later than 45 days before the due date.

7. Claims for delayed payments shall be borne by the ACP State or States concerned, and by the Commission from its own resources, for that part of the delay for which each party is responsible in accordance with the above procedures.

8. The Paying Agents, the National Authorizing Officer, the Head of Delegation and the responsible Commission departments shall remain financially liable until the Commission gives final clearance for the operations for the execution of which they are responsible.

ANNEX V : TRADE REGIME APPLICABLE DURING THE PREPARATORY PERIOD REFERRED TO IN ARTICLE 37 (1)

Chapter 1 General trade arrangements

Article 1

1. Products originating in the ACP States shall be imported into the Community free of customs duties and charges having equivalent effect.

2. (a) For products originating in the ACP States:

- listed in Annex I to the Treaty where they come under a common organization of the market within the meaning of Article 34 of the Treaty, or

- subject, on import into the Community, to specific rules introduced as a result of the implementation of the common agricultural policy,

the Community shall take the necessary measures to ensure more favorable treatment than that granted to third countries benefiting from the most-favored-nation clause for the same products.

(b) If, during the application of this annex, the ACP States request that new lines of agricultural production or agricultural products which are not the subject of specific arrangements when this annex enters into force should benefit from such arrangements, the Community shall examine these requests in consultation with the ACP States.

(c) Notwithstanding the above, the Community shall, in the context of the special relations and special nature of ACP-EC cooperation, examine on a case-by-case basis the requests from the ACP States for preferential access for their agricultural products to the Community market and shall notify its decision on these reasoned requests if possible within four months, and in any case not more than six months after the date of their submission.

Within the context of subparagraph (a), the Community shall take its decisions in particular with reference to concessions granted to developing third countries. It shall take account of the possibilities offered by the off-season market.

(d) The arrangements referred to in subparagraph (a) shall enter into force at the same time as this Agreement and shall remain applicable for the duration of the preparatory period defined in Article 37(1) of the Agreement.

However, if during this period, the Community:

- subjects one or more products to common organization of the market or to specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to adapt the import treatment for those products originating in the ACP States, following consultations within the Council of Ministers. In such cases, the provisions of subparagraph (a) shall be applicable;

- modifies the common organization of the market in a particular product or the specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to modify the arrangements laid down for products originating in the ACP States, following consultations within the Council of Ministers. In such cases the Community shall undertake to ensure that products originating in the ACP States continue to enjoy an advantage comparable to that previously enjoyed in relation to products originating in third countries benefiting from the most-favored-nation clause.

(e) Where the Community intends to conclude a preferential agreement with third States it shall inform the ACP States thereof. Consultations shall take place where the ACP States so request in order to safeguard their interests.

Article 2

1. The Community shall not apply to imports of products originating in the ACP States any quantitative restrictions or measures having equivalent effect.

2. Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archaeological value, conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption, or the protection of industrial and commercial property.

3. Such prohibitions or restrictions shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade generally.

In cases where implementation of the measures referred to in paragraph 2 affects the interests of one or more ACP States, consultation shall be held at the request of the latter, in accordance with the provisions of Article 12 of this Agreement, with a view to reaching a satisfactory solution.

Article 3

1. Where new measures or measures stipulated in programs adopted by the Community for the approximation of laws and regulations in order to facilitate the movement of goods are likely to affect the interests of one or more ACP States, the Community shall, prior to adopting such measures, inform the ACP States thereof through the Council of Ministers.

2. In order to enable the Community to take into consideration the interests of the ACP State concerned, consultations shall be held at the request of the latter in accordance with the provisions of Article 12 of this Agreement, with a view to reaching a satisfactory solution.

Article 4

1. Where existing Community rules or regulations adopted in order to facilitate the movement of goods affect the interests of one or more ACP States or where these interests are affected by the interpretation, application or administration of such rules or regulations, consultations shall be held at the request of the ACP States concerned with a view to reaching a satisfactory solution.

2. With a view to finding a satisfactory solution, the ACP States may also bring up within the Council of Ministers any other problems relating to the movement of goods which might result from measures taken or envisaged by the Member States.

3. The relevant institutions of the Community shall, to the greatest possible extent, inform the Council of Ministers of such measures in order to ensure effective consultations.

Article 5

1. The ACP States shall not be required to assume, in respect of imports of products originating in the Community, obligations corresponding to the commitment entered into by the Community under this Annex in respect of imports of the products originating in the ACP States.

2. (a) In their trade with the Community, the ACP States shall not discriminate among the Member States and shall grant to the Community treatment no less favorable than most-favored-nation treatment.

(b) The most-favored-nation treatment referred to in subparagraph (a) shall not apply in respect of trade or economic relations between ACP States or between one or more ACP States and other developing countries.

Article 6

Each Contracting Party shall communicate its customs tariff to the Council of Ministers within three months of the entry into force of this Annex. Each Contracting Party shall also communicate any subsequent amendments to its tariff as and when they come into force.

Article 7

1. The concept of 'originating products' for the purposes of implementing this Annex, and the methods of administrative cooperation relating thereto, are defined in Protocol 1 annexed hereto.

2. The Council of Ministers may adopt any amendment to Protocol 1.

3. Where the concept of 'originating products' has not yet been defined for a given product pursuant to paragraphs 1 or 2, each Contracting Party shall continue to apply its own rules.

Article 8

1. Where any product is being imported into the Community in such increased quantities and under such conditions as to cause or threaten to cause serious injury to its domestic producers of like or directly competitive products or serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region, the Community may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 9.

2. The Community undertakes not to use other means for protectionism purposes or to hamper structural development. The Community will refrain from using safeguard measures having the same effect.

3. Safeguard measures shall be restricted to those which would least disturb trade between the Contracting Parties in implementing the objectives of this Agreement and must not exceed the scope of what is strictly necessary to remedy the difficulties that have arisen.

4. When applied, safeguard measures shall take into account the existing level of the ACP exports concerned to the Community and their potential for development. Particular attention shall be paid to the interests of the least-developed, landlocked and island ACP States.

Article 9

1. Prior consultation shall take place concerning the application of the safeguard clause, both when such measures are first adopted and when they are extended. The Community shall provide the ACP States with all the information required for such consultations and shall provide the data from which to determine to what extent imports from an ACP State of a specific product have caused the effects referred to in Article 8(1).

2. Where consultations have taken place, safeguard measures, or arrangements jointly agreed upon by the ACP States concerned and the Community, shall enter into force thereafter.

3. However, the prior consultations provided for in paragraphs 1 and 2 shall not prevent any immediate decisions which the Community, in accordance with Article 8(1), might take where special factors have necessitated such decisions.

4. In order to facilitate the examination of factors that may cause market disturbances, a mechanism shall be instituted for the statistical surveillance of certain ACP exports to the Community.

5. The Contracting Parties undertake to hold regular consultations with a view to finding satisfactory solutions to problems which might result from the application of the safeguard clause.

6. The prior consultations as well as the regular consultations and the surveillance mechanism referred to in paragraphs 1 to 5 shall be implemented in accordance with Protocol 2 annexed hereto.

Article 10

The Council of Ministers shall, at the request of any Contracting Party concerned, consider the economic and social effects of the application of the safeguard clause.

Article 11

When safeguard measures are being taken, modified or removed, particular attention shall be paid to the interests of the least-developed, landlocked and island ACP States.

Article 12

In order to ensure the effective implementation of this Annex, the Contracting Parties agree to inform and consult each other.

In addition to the cases for which consultations are specifically provided for in Article 2 to 9, consultations shall also take place, at the request of the Community or the ACP States, and in accordance with the conditions provided for in the procedural rules in Article 12 of this Agreement, particularly in the following cases:

(1) where Contracting Parties intend to take any trade measures affecting the interests of one or more Contracting Parties under this Annex, they shall inform the Council of Ministers thereof. Consultations shall take place, where the Contracting Parties concerned so request, in order to take account of their respective interests;

(2) if, during the application of this Annex, the ACP States consider that agricultural products covered by paragraph 1 (2)(a) other than those subject to special treatment should benefit form such treatment, consultations may take place within the Council of Ministers;

(3) where a Contracting Party considers that obstacles to the movement of goods arise as a result of the existing rules of another Contracting Party or the interpretation, application or administration thereof;

(4) where the Community takes safeguard measures in accordance with the provisions of Article 8 of this Annex, consultations on these measures may take place within the Council of Ministers, where the Contracting Parties concerned so request, notably with a view to ensuring compliance with paragraph 8(3).

Such consultations must be completed within three months.

Chapter 2 Special undertaking on sugar and beef and veal

Article 13

1. In accordance with Article 25 of the ACP-EEC Convention of Lomé signed on 28 February 1975 and with Protocol 3 annexed thereto, the Community has undertaken for an indefinite period, notwithstanding the other provisions of this Annex, to purchase and import, at guaranteed prices, specific quantities of cane sugar, raw or white, which originates in the ACP States producing and exporting cane sugar and which those States have undertaken to deliver to it.

2. The conditions for the implementation of the aforementioned Article 25 have been laid down by Protocol 3 referred to in paragraph 1. The text of the Protocol is attached to this Annex as Protocol 3.

3. Article 8 of this Annex shall not apply within the framework of the said Protocol.

4. For the purpose of Article 8 of the said Protocol the institutions established under this Agreement may be used during the period of application of this Agreement.

5. Article 8(2) of the said Protocol shall apply should this Agreement cease to be operative.

6. The declarations contained in Annexes XIII, XXI and XXII of the Final Act to the ACP-EEC Convention of Lomé signed on 28 February 1975 are reaffirmed and their provisions shall continue to apply. These declarations are annexed as such to protocol 3.

7. This Article and Protocol 3 shall not apply to relations between the ACP States and the French overseas departments.

Article 14

The special undertaking on beef and veal, defined in Protocol 4 annexed hereto shall apply.

Chapter 3 Final provisions

Article 15

The Protocols attached to this Annex shall form an integral part thereof.

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

INDEX // 19. Conditions for making out an invoice declaration

// 20. Approved exporter

// 21. Validity of proof of origin

TITLE I: General Provisions // 22. Transit procedure

// 23. Submission of proof of origin

Articles // 24. Importation by installments

1. Definitions // 25. Exemptions from proof of origin

// 26. Information procedure for cumulation purposes

TITLE II : Definition on the concept of "originating products" // 27. Supporting documents

// 28. Preservation of proof of origin and supporting documents

// 29. Discrepancies and formal errors

Articles // 30. Amounts expressed in EUR

2. General requirements //

3. Wholly obtained products // TITLE V : Arrangements for administrative cooperation

4. Sufficiently worked or processed products //

5. Insufficient working or processing operations // Articles

6. cumulation of origin // 31. Mutual assistance

7. Unit of qualification // 32. Verification of proofs of origin

8. Accessories, spare parts and tools // 33. Verification of suppliers' declaration

9. Sets // 34. Dispute settlement

10. Neutral elements // 35. Penalties

// 36. Free zones

TITLE III : Territorial requirements // 37. Customs Cooperation Committee

// 38. Derogations

Articles //

11. Principle of territoriality // TITLE VI : Ceuta and Melilla

12. Direct transport //

13. Exhibitions // Articles

// 39. Special conditions

TITLE IV : Proof of origin //

// TITLE VII : Final Provisions

Articles //

14. General requirements // Articles

15. Procedure for the issue of a movement certificate EUR 1 // 40. Revision of rules of origin

// 41. Annexes

16. Movement certificates EUR 1 issued retrospectively // 42. Implementation of the Protocol

17. Issue of a duplicate movement certificate EUR 1 //

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

INDEX

ANNEXES

ANNEX I : Introductory notes to the list in Annex II

ANNEX II : List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

ANNEX III

ANNEX IV to Protocol 1 Form for movement certificate

ANNEX V to Protocol 1 Invoice declaration

ANNEX VIA to Protocol 1 Supplier declaration for products having preferential origin status

ANNEX VIB : Supplier declaration for products not having preferential original status

ANNEX VII : Information certificate

ANNEX VIII : Form for application for a derogation

ANNEX IX : List working or processing conferring the character of ACP origin on a product obtained when working or processing is carried out on textile materials originating in developing countries referred to in Article 6(11) of this Protocol

ANNEX X : Textile products excluded from the cumulation procedure with certain developing countries referred to in Article 6(11) of this Protocol

ANNEX XI : Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 3 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

ANNEX XII : Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 6 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

ANNEX XIII to protocol 1 Products to which Article 6(3) shall not be applicable

ANNEX XIV to Protocol 1 Fishery products to which Article 6(3) shall temporarily not be applicable

ANNEX XV to Protocol 1 Joint declaration on cumulation

TITLE I GENERAL PROVISIONS

Article 1 Definitions

For the purposes of this Protocol:

(a) "manufacture" means any kind of working or processing including assembly or specific operations;

(b) "material" means any ingredient, raw material, component or part, etc., used in the manufacture of the product;

(c) "product" means the product being manufactured, even if it is intended for later use in another manufacturing operation;

(d) "goods" means both materials and products;

(e) "customs value" means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation);

(f) "ex-works price" means the price paid for the product ex works to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;

(g) "value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the territory concerned

(h) "value of originating materials" means the value of such materials as defined in subparagraph (g) applied mutatis mutandis;

(i) "added value" shall be taken to be the ex-works price minus the customs value of third-country materials imported into the Community, the ACP States or the OCT

(j) "chapters" and "headings" mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonized Commodity Description and Coding System, referred to in this Protocol as "the Harmonized System" or "HS";

(k) "classified" refers to the classification of a product or material under a particular heading;

(l) "consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;

(m) "territories" includes territorial waters.

TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2 General requirements

1. For the purpose of implementing the trade co-operation provisions of ANNEX V, the following products shall be considered as originating in the ACP States:

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

(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 Protocol.

2. For the purpose of implementing 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 that referred to in Article 5 of this Protocol.

Article 3 Wholly obtained products

1. The following shall be considered as wholly obtained, in the ACP States or in the Community, or in the countries and territories defined in Annex III, hereafter referred to as the OCT:

(a) mineral products extracted from their soil or from their seabed;

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained by hunting or fishing conducted there;

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

(g) products made aboard their factory ships exclusively from products referred to in subparagraph (f);

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

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

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

(k) goods produced there exclusively from the products specified in subparagraphs (a) to (j).

2. The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships:

(a) which are registered or recorded in an EC Member State, in an ACP State or in an OCT

(b) which sail under the flag of an EC Member State, of an ACP State or of an OCT;

(c) which are owned to an extent of at least 50 per cent by nationals of States party to the Agreement, or of an OCT, or by a company with its head office in one of these States or OCT, of which the Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of States party to the Agreement, or of an OCT, and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States party to the Agreement or to public bodies or nationals of the said States, or of an OCT;

(d) of which at least 50 % of the crew, master and officers included, are nationals of States party to the Agreement, or of an OCT.

3. Notwithstanding the provisions of paragraph 2, the Community shall recognise, upon request of an ACP State, that vessels chartered or leased by the ACP State be treated as "their vessels" to undertake fisheries activities in its exclusive economic zone under the following conditions:

- that the ACP State offered the Community the opportunity to negotiate a fisheries agreement and the Community did not accept this offer;

- that at least 50% of the crew, master and officers included are nationals of States party to the Agreement, or of an OCT;

- that the charter or lease contract has been accepted by the ACP-EU Customs Cooperation Committee as providing adequate opportunities for developing 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 Protocol, products which are not wholly obtained are considered to be sufficiently worked or processed in the ACP States, or in the Community or in the OCT, when the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a given product may nevertheless be used, provided that:

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

(b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph.

3. Paragraphs 1 and 2 shall apply except as provided 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) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;

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

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

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

(e) simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in an ACP State, in the Community or in the OCT;

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

(g) a combination of two or more operations specified in subparagraphs (a) to (f);

(h) slaughter of animals.

2. All the operations carried out in either the ACP States, the Community or the OCT 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 Community

1. Materials originating in the Community 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 that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 5.

2. Working and processing carried out in the Community 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.

Cumulation with South Africa

3. Subject to the provisions of paragraphs, 4, 5, 6, 7 and 8, materials originating in South Africa shall be considered as originating in the ACP States when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing.

4. Products which have acquired originating status by virtue of paragraph 3 shall only continue to be considered as products originating in the ACP States when the value added there exceeds the value of the materials used originating in South Africa. If this 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.

5. The cumulation provided for in paragraph 3 may only be applied after 3 years for the products listed in Annex XI and 6 years for the products listed in Annex XII respectively, as from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa. The cumulation provided for in paragraph 3 shall not be applicable to the products listed in Annex XIII.

6. Notwithstanding paragraph 5, the cumulation provided for in paragraph 3 may be applied at the request of the ACP States for the products listed in Annexes XI and XII. The ACP-EC Committee of Ambassadors shall decide on the ACP requests, product per product, on the basis of a report drawn up by the ACP-EC Customs Co-operation Committee in accordance with Article 37. In the examination of requests, account shall be taken of the risk of the circumvention of the trade provisions of the agreement on trade, development and co-operation between the European Community and the Republic of South Africa.

7. The cumulation provided for in paragraph 3 shall only be applicable to the products listed in annex XIV when the tariffs on these products in the framework of the agreement on trade, development and co-operation between the European Community and the Republic of South Africa have been eliminated. The European Commission shall publish in the Official Journal of the European Communities (C series) the date on which the conditions of this paragraph have been fulfilled.

8. The cumulation provided for in paragraph 3 may only be applied where the South African materials used have acquired the status of originating products by an application of the rules of origin identical to those set out in this Protocol. The ACP States shall provide the Community with details of agreements and their corresponding rules of origin which have been concluded with South Africa. The European Commission shall publish in the Official Journal of the European Communities (C series) the date on which the ACP States have met the obligations laid down in this paragraph .

9. Without prejudice to paragraphs 5 and 7, working and processing carried out in South Africa shall be considered as having been carried out in an other Member State of SACU when the materials undergo subsequent working or processing in that other Member State of SACU.

10. Without prejudice to paragraphs 5 and 7 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.

Unless there is a specific request by either party for a referral of the decision to the ACP-EC Council of Ministers, the ACP-EC Customs Cooperation Committee shall decide on the ACP requests in accordance with Article 37.

Cumulation with neighbouring developing countries

11. 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 that such materials 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. However, products of Chapter 50 to 63 of the Harmonised System shall in addition undergo in the ACP State at least working or processing as a result of which the product obtained is classified in a heading which is different from those in which the materials originating in the non-ACP developing country used in its manufacture, are classified. For products listed in Annex IX to this Protocol, only the specific processing referred to in column 3 shall apply, whether or not it involves a change of heading,

- the ACP States, the Community 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 Chapters 3 or 16, rice products of HS Code 1006 or the textile products listed in Annex X to this Protocol.

For the purpose of determining whether the products originate in the non-ACP developing country, the provisions of this Protocol shall apply.

Unless there is a specific request by either party for a referral of the decision to the ACP-EC Council of Ministers, the ACP-EC Customs Cooperation Committee shall decide on the ACP requests in accordance with Article 37.

Article 7 Unit of qualification

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

Accordingly, it follows that:

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

(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Protocol.

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

Article 8 Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 9 Sets

Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 per cent of the ex-works price of the set.

Article 10 Neutral elements

In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

(a) energy and fuel;

(b) plant and equipment;

(c) machines and tools;

(d) goods which do not enter and which are not intended to enter into the final composition of the product.

TITLE III TERRITORIAL REQUIREMENTS

Article 11 Principle of territoriality

1. The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in the ACP States , except as provided for in Article 6

2. If originating goods exported from the ACP States, the Community or the OCT to another country are returned, except insofar as provided for in Article 6, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the goods returned are the same goods as those exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

Article 12 Direct transport

1. The preferential treatment provided for under the trade co-operation provisions of ANNEX V applies only to products, satisfying the requirements of this Protocol, which are transported directly between the territory of the ACP States, of the Community 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, transshipment 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, of the Community or of an OCT.

2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a) a single transport document covering the passage from the exporting country through the country of transit; or

(b) a certificate issued by the customs authorities of the country of transit:

(i) giving an exact description of the products;

(ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used; and

(iii) certifying the conditions under which the products remained in the transit country; or

(c) failing these, any substantiating documents.

Article 13 Exhibitions

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

(a) an exporter has consigned these products from an ACP State to the country in which the exhibition is held and has exhibited them there;

(b) the products have been sold or otherwise disposed of by that exporter to a person in the Community;

(c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and

(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

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

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

TITLE IV PROOF OF ORIGIN

Article 14 General requirements

1. Products originating in the ACP States shall, on importation into the Community benefit from ANNEX V upon submission of either:

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

(b) in the cases specified in Article 19(1), a declaration, the text of which appears in Annex V to this Protocol, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the "invoice declaration").

2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 25, benefit from ANNEX V without it being necessary to submit any of the documents referred to above.

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 his authorized representative.

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

3. The exporter applying for the issue of 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 fulfillment of the other requirements of this Protocol.

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 referred to in Article 6 and fulfil the other requirements of this Protocol.

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

6. The date of issue of the 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 must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his 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 agrees with that in the corresponding file.

4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

"NACHTRÄGLICH AUSGESTELLT", "DELIVRE A POSTERIORI",

"RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI",

"ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE",

"ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ", "EXPEDIDO A POSTERIORI",

"EMITIDO A POSTERIORI", "ANNETTU JÄLKIKÄTEEN",

"UTFÄRDAT I EFTERHAND".

5. The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box 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 must be endorsed with one of the following words:

"DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE", "ÁÍÔÉÃÑÁÖÏ", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE".

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

4. The duplicate, which must 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 Community , 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 these products elsewhere within the ACP States or within the Community. The replacement movement certificate(s) 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 Article 14(1)(b) 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 6 000 EURO.

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 referred to in Article 6 and fulfil the other requirements of this Protocol.

3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting country, all appropriate documents proving the originating status of the products concerned as well as the fulfillment of the other requirements of this Protocol.

4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex V to this Protocol, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the domestic law of the exporting country. If the declaration is handwritten, it shall be written in ink in printed characters.

5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 20 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him.

6. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing country no longer than two years after the importation of the products to which it relates.

Article 20 Approved exporter

1. The customs authorities of the exporting country may authorize any exporter who makes frequent shipments of products under the trade co-operation provisions of ANNEX V to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorization must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the products as well as the fulfillment of the other requirements of this Protocol.

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

3. The customs authorities shall grant to the approved exporter a customs authorization number which shall appear on the invoice declaration.

4. The customs authorities shall monitor the use of the authorization by the approved exporter.

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

Article 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 must be submitted within the said period to the customs authorities of the importing country.

2. Proofs of origin which are submitted to the customs authorities of the importing country after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.

3. In other cases of belated presentation, the customs authorities of the importing country may accept the proofs of origin where the products have been submitted before the said final date.

Article 22 Transit procedure

When the products enter an ACP State or OCT other than the country of origin, a further period of validity of 4 months shall commence on the date on which the customs authorities in the country of transit enter the following in box 7 of the 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,

- 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. The said authorities may require a translation of a proof of origin and may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of ANNEX V.

Article 24 Importation by installments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or heading Nos 7308 and 9406 of the Harmonized System are imported by installments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first installment.

Article 25 Exemptions from proof of origin

1. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, this declaration can be made on the customs declaration 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 these products shall not exceed 500 EURO in the case of small packages or 1 200 EURO 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, the evidence of originating status within the meaning of this protocol of the materials coming from the other ACP States, the Community or the OCT shall be given by a movement certificate EUR 1 or by the supplier's declaration, a specimen of which appears in Annex VI A to this Protocol, given by the exporter in the State or OCT from which it came.

2. When Articles 2(2), 6(2) and 6(9) are applied, the evidence of the working or processing carried out in the other ACP States, the Community, the OCT or South Africa shall be given by the supplier's declaration a specimen of which appears in Annex VI B to this Protocol, given by the exporter in the State or OCT from which it came.

3. A separate supplier's declaration shall be given by the supplier for each consignment of material on the commercial invoice related to that shipment or in an annex to that invoice, or on a delivery note or other commercial document related to that shipment which describes the materials concerned in sufficient detail to enable 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 established. The said customs authorities may lay down conditions for the implementation of this paragraph.

6. The supplier's declarations are submitted to the competent customs office in the exporting ACP State requested to issue the movement certificate EUR 1.

7. Suppliers' declarations made and information certificates issued before the date of entry into force of this Protocol in accordance with Article 23 of Protocol 1 to the fourth ACP-EEC Convention shall remain valid.

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 referred to in Article 6 and fulfil the other requirements of this Protocol may consist inter alia of the following:

(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;

(b) documents proving the originating status of materials used, issued or made out in an ACP State or in one of the other countries referred to in Article 6 where these documents are used in accordance with domestic law;

(c) documents proving the working or processing of materials in the ACP States, in the Community or in the OCT, issued or made out in an ACP State, in the Community or in an OCT, where these documents are used in accordance with domestic law;

(d) movement certificates EUR.1 or invoice declarations proving the originating status of materials used, issued or made out in the ACP States or in one of the other countries referred to in Article 6 and in accordance with this Protocol.

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 for at least three years the documents referred to in Article 15(3).

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

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

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

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 this document does correspond to the products submitted.

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

Article 30 Amounts expressed in EURO

1. The amounts to be used in any given national currency of a Member State shall be the equivalent in that national currency of the amounts expressed in EURO as at the first working day in October 1999.

2. The amounts expressed in EURO and their equivalents in the national currencies of some EC Member States may be reviewed by the Community if necessary and shall be notified by the Community to the Customs Cooperation Committee not later than one month before they shall come into force When carrying out this review, the Community shall ensure that there will be no decrease in the amounts to be used in any national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in EURO.

3. When the products are invoiced in the currency of another EC Member State, the importing country shall recognize the amount notified by the Member State concerned.

TITLE V ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31 Mutual assistance

1. The ACP States shall send to 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 this information to the customs authorities of the Member States.

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

The authorities consulted shall furnish the relevant information concerning the conditions under which the product has been made, indicating especially the conditions in which the rules of origin have been respected in the various ACP States, Member States, 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 Protocol.

2. For the purposes of implementing the provisions of 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 these documents, to the customs authorities of the exporting country giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof 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 this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate.

4. If the customs authorities of the importing country decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary.

5. The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the ACP States or in one of the countries referred to in Article 6 and fulfil the other requirements of this Protocol.

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 available information appears to indicate that the provisions of this Protocol are being contravened, the ACP State on its own initiative or at the request of the Community shall carry out appropriate enquires or arrange for such enquiries to be carried out with due urgency to identify and prevent such contraventions and for this purpose the ACP State concerned may invite the participation of the Community in these enquiries.

Article 33 Verification of suppliers' declarations

1. Verification of suppliers' declaration may 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 Annex VII to this Protocol. 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 has issued it for at least three years.

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

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

5. The customs authorities in the State where the supplier's declaration is established 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 Dispute settlement

Where disputes arise in relation to the verification procedures of Articles 32 and 33 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the Customs Cooperation Committee provided for in Article 37.

In all cases the settlement of disputes between the importer and the customs authorities of the importing country shall be under the legislation of the said country.

Article 35 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 a preferential treatment for products.

Article 36 Free zones

1. The ACP States shall take all necessary steps 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 means of an exemption to the provisions contained in 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 EUR.1 certificate at the exporter's request, if the treatment or processing undergone is in conformity with the provisions of this Protocol.

Article 37 Customs Cooperation Committee

1. A Customs Cooperation Committee, hereinafter referred to as "the Committee", shall be set up and charged with carrying out administrative cooperation with a view to the correct and uniform application of this Protocol and with carrying out any other task in the customs field which may be entrusted to it.

2. The Committee shall examine regularly the effect on the ACP States and in particular on the least developed ACP States of application of the rules of origin and shall recommend to the Council of Ministers appropriate measures.

3. The Committee shall take decisions on cumulation under the conditions laid down in Article 6.

4. The Committee shall take decisions on derogations from this Protocol, under the conditions laid down in Article 38.

5. The Committee shall meet regularly, in particular to prepare the decisions of the Council of Ministers pursuant to Article 40.

6. The Committee shall be composed on the one hand of experts from the Member States and of Commission officials responsible for customs questions, and on the other hand of experts representing the ACP States and of officials of regional groupings of the ACP States who are responsible for customs questions. The Committee may call upon appropriate expertise where necessary.

Article 38 Derogations

1. Derogations from this Protocol may be adopted by the Committee where the development of existing industries or the creation of new industries justifies them.

The ACP State or States concerned shall, either before or when the ACP States submit the matter to the Committee, notify the Community of its request for a derogation together with the reasons for the request in accordance with paragraph 2.

The Community shall respond positively to all the ACP requests which are duly justified in conformity with this Article and which cannot cause serious injury to an established Community industry.

2. In order to facilitate the examination by the Committee of requests for derogation, the ACP State making the request shall, by means of the form given in Annex VIII to this Protocol, furnish in support of its request the fullest possible information covering in particular the points listed below:

- description of the finished product,

- nature and quantity of materials originating in a third country,

- nature and quantity of materials originating in ACP States, the Community or the OCT, or which have been processed there,

- manufacturing processes,

- value added,

- number of employees in the enterprise concerned,

- anticipated volume of exports to the Community,

- other possible sources of supply for raw materials

- reasons for the duration requested in the light of efforts made to find new sources of supply,

- other observations.

The same rules shall apply to any requests for extension.

The Committee may modify the form.

3. The examination of requests shall in particular take into account:

(a) the level of development or the geographical situation of the ACP State or States concerned;

(b) cases where the application of the existing rules of origin would significantly affect the ability of an existing industry in an ACP State to continue its exports to the Community, with particular reference to cases where this could lead to cessation of its activities;

(c) specific cases where it can be clearly demonstrated that significant investment in an industry could be deterred by the rules of origin and where a derogation favouring the realisation of the investment programme would enable these rules to be satisfied by stages.

4. In every case an examination shall be made to ascertain whether the rules relating to cumulation of origin do not provide a solution to the problem.

5. In addition when a request for derogation concerns a least-developed or an island ACP State, its examination shall be carried out with a favourable bias having particular regard to:

(a) the economic and social impact of the decision to be taken especially in respect of employment;

(b) the need to apply the derogation for a period taking into account the particular situation of the ACP State concerned and its difficulties.

6. In the examination of requests, special account shall be taken, case by case, of the possibility of conferring originating status on products which include in their composition materials originating in neighbouring developing countries, least-developed countries or developing countries with which one or more ACP States have special relations, provided that satisfactory administrative co-operation can be established.

7. Without prejudice to paragraphs 1 to 6, the derogation shall be granted where the value added to the non-originating products used in the ACP State or States concerned is at least 45% of the value of the finished product, provided that the derogation is not such as to cause serious injury to an economic sector of the Community or of one or more Member States.

8. Notwithstanding paragraphs 1 to 7, derogations concerning canned tuna and tuna loins shall only be granted within an annual quota of 8,000 tonnes, for canned tuna and within an annual quota of 2,000 tonnes for tuna loins.

Applications for such derogations shall be submitted by the ACP States in accordance with the abovementioned quota to the Committee, which shall grant them automatically and put them into force by means of a decision.

9. The Committee shall take steps necessary to ensure that a decision is reached as quickly as possible and in any case not later than seventy-five working days after the request is received by the EC Co-chairman of the Committee. If the Community does not inform the ACP States of its position on the request within this period, the request shall be deemed to have been accepted. In the event of a decision not being taken by the Committee, the Committee of Ambassadors shall be called upon to decide within one month of the date on which the matter is referred to it.

10. (a) The derogation shall be valid for a period, generally of five years, to be determined by the Committee.

(b) The derogation decision may provide for renewals without a new decision of the Committee being necessary, provided that the ACP State or States concerned submit, three months before the end of each period, proof that they are still unable to meet the conditions of this Protocol which have been derogated from.

If any objection is made to the extension, the Committee shall examine it as soon as possible and decide whether to prolong the derogation. The Committee shall proceed as provided for in paragraph 9. All necessary measures shall be taken to avoid interruptions in the application of the derogation.

(c) In the periods referred to in subparagraphs (a) and (b), the Committee may review the terms for implementing the derogation should a significant change be found to have taken place in the substantive factors governing the decision to grant the derogation. On conclusion of its review the Committee may decide to amend the terms of its decision as regards the scope of derogation or any other condition previously laid down.

TITLE VI CEUTA AND MELILLA

Article 39 Special conditions

1. The term "Community" used in this Protocol shall not cover Ceuta and Melilla. The term "products originating in the Community" shall not cover products originating in Ceuta and Melilla.

2. The provisions of this Protocol 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, the OCT or the Community 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, the OCT or the Community 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 implementing paragraphs 3 and 4, 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 PROVISIONS

Article 40 Revision of rules of origin

In accordance with Article 7 of ANNEX V, the Council of Ministers shall examine annually, or whenever the ACP States or the Community so request, the application of the provisions of this Protocol and their economic effects with a view to making any necessary amendments or adaptations.

The Council of Ministers shall take into account among other elements the effects on the rules of origin of technological developments.

The decisions taken shall be implemented as soon as possible.

Article 41 Annexes

The Annexes to this Protocol shall form an integral part thereof.

Article 42 Implementation of the Protocol

The Community and the ACP States shall each take the steps necessary to implement this Protocol.

ANNEX I to Protocol 1 Introductory notes to the list in Annex II

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 4 of the Protocol.

Note 2:

1. first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns a rule is specified in columns 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rules in columns 3 or 4 apply only to the part of that heading as described in column 2.

2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in columns 3 or 4 apply to all products which, under the Harmonized System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in columns 3 or 4.

4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 3:

1. The provisions of Article 4 of the Protocol concerning products having acquired originating status which are used in the manufacture of other products apply regardless of whether this status has been acquired inside the factory where these products are used or in another factory in the Community or in the ACP States.

Example:

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 per cent of the ex-works price, is made from "other alloy steel roughly shaped by forging" of heading No ex 7224.

If this forging has been forged in the Community from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading No ex 7224 in the list. The forging can then count as originating in the value calculation for the engine regardless of whether it was produced in the same factory or in another factory in the Community. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

2. The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer originating status. Thus if a rule provides that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not.

3. Without prejudice to Note 3.2 where a rule states that "materials of any heading" may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression "manufacture from materials of any heading, including other materials of heading No ..." means that only materials classified in the same heading as the product of a different description than that of the product as given in column 2 of the list may be used.

4. When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of heading Nos 5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other or both.

5. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.3 below in relation to textiles).

Example:

The rule for prepared foods of heading No 1904 which specifically excludes the use of cereals and their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage.

6. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to.

Note 4:

1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres that have been carded, combed or otherwise processed but not spun.

2. The term "natural fibres" includes horsehair of heading No 0503, silk of heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of heading Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and the other vegetable fibres of heading Nos 5301 to 5305.

3. The terms "textile pulp", "chemical materials" and "paper-making materials" are used in the list to describe the materials not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of heading Nos 5501 to 5507.

Note 5:

1. Where for a given product in the list a reference is made to this note, the conditions set out in column 3 shall not be applied to any basic textile materials, used in the manufacture of this product, which, taken together, represent 10 per cent or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below).

2. However, the tolerance mentioned in Note 5.1 may only be applied to mixed products which have been made from two or more basic textile materials.

The following are the basic textile materials:

- silk,

- wool,

- coarse animal hair,

- fine animal hair,

- horsehair,

- cotton,

- paper-making materials and paper,

- flax,

- true hemp,

- jute and other textile bast fibres,

- sisal and other textile fibres of the genus Agave,

- coconut, abaca, ramie and other vegetable textile fibres,

- synthetic man-made filaments,

- artificial man-made filaments,

- current conducting filaments

- synthetic man-made staple fibres of polypropylene,

- synthetic man-made staple fibres of polyester,

- synthetic man-made staple fibres of polyamide,

- synthetic man-made staple fibres of polyacrylonitrile,

- synthetic man-made staple fibres of polyimide,

- synthetic man-made staple fibres of polytetrafluoroethylene,

- synthetic man-made staple fibres of polyphenylene sulphide,

- synthetic man-made staple fibres of polyvinyl chloride,

- other synthetic man-made staple fibres,

- artificial man-made staple fibres of viscose,

- other artificial man-made staple fibres,

- yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped,

- yarn made of polyurethane segmented with flexible segments of polyester whether or not gimped,

- products of heading No 5605 (metallized yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film,

- other products of heading No 5605.

Example:

A yarn of heading No 5205 made from cotton fibres of heading No 5203 and synthetic staple fibres of heading No 5506 is a mixed yarn. Therefore, non-originating synthetic staple fibres that do not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 10 per cent of the yarn.

Example:

A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic yarn which does not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning) or a combination of the two may be used provided their total weight does not exceed 10 per cent of the weight of the fabric.

Example:

Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205 and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a mixed fabric being made from yarns classified in two separate headings or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is accordingly a mixed product.

3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped" this tolerance is 20 per cent in respect of this yarn.

4. In the case of products incorporating "strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of an adhesive between two layers of plastic film", this tolerance is 30 per cent in respect of this strip.

Note 6:

1. In the case of those textile products, which are marked in the list by a footnote referring to this Introductory Note, textile trimmings and accessories which do not satisfy the rule set out in the list in column 3 for the made up products concerned may be used provided that their weight does not exceed 10% of the total weight of all the textile materials incorporated.

Textile trimmings and accessories are those classified in Chapters 50 to 63. Linings and interlinings are not be regarded as trimmings or accessories.

2. Any non-textile trimmings and accessories or other materials used which contain textiles do not have to satisfy the conditions set out in column 3 even though they fall outside the scope of Note 3.5.

3. In accordance with Note 3.5, any non-originating non-textile trimmings and accessories or other product, which do not contain any textiles, may, anyway, be used freely where they cannot be made from the materials listed in column 3.

- For example, if a rule in the list says that for a particular textile item, such as a blouse, yarn must be used, this does not prevent the use of metal items, such as buttons, because they cannot be made from textile materials.

4. Where a percentage rule applies, the value of trimmings and accessories must be taken into account when calculating the value of the non-originating materials incorporated.

Note 7:

1. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "specific processes" are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process ;

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents; decolorization and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerization;

(h) alkylation;

(i) isomerization.

2. For the purposes of heading Nos 2710, 2711 and 2712, the "specific processes" are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process (1)

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents; decolorization and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerization;

(h) alkylation;

(i) isomerization;

(j) in respect of heavy oils falling within heading No ex 2710 only, desulphurization with hydrogen resulting in a reduction of at least 85 per cent of the sulphur content of the products processed (ASTM D 1266-59 T method);

(k) in respect of products falling within heading No 2710 only, deparaffining by a process other than filtering;

(l) in respect of heavy oils falling within heading No ex 2710 only, treatment with hydrogen at a pressure of more than 20 bar and a temperature of more than 25O°C with the use of a catalyst, other than to effect desulphurization, when the hydrogen constitutes an active element in a chemical reaction. The further treatment with hydrogen of lubricating oils of heading No ex 2710 (e.g. hydrofinishing or decolorization) in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;

(m) in respect of fuel oils falling within heading No ex 2710 only, atmospheric distillation, on condition that less than 30 per cent of these products distils, by volume, including losses, at 300°C by the ASTM D 86 method;

(n) in respect of heavy oils other than gas oils and fuel oils falling within heading No ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.

3. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations such as cleaning, decanting, desalting, water separation, filtering, colouring, marking, obtaining a sulphur content as a result of mixing products with different sulphur contents, any combination of these operations or like operations do not confer origin.

ANNEX II to Protocol 1 List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

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

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ANNEX III to Protocol 1

Within the meaning of this Protocol 'countries and territories' shall mean the countries and territories referred to in Part Four of the Treaty establishing the European community listed below:

(This list does not prejudge the status of these countries and territories, or future changes in their status.)

1. Country having special relations with the Kingdom of Denmark:

- Greenland.

2. Overseas territories of the French Republic:

- New Caledonia,

- French Polynesia,

- French Southern and Antarctic Territories,

- Wallis and Futuna Islands.

3. Territorial collectivities of the French Republic:

- Mayotte,

- Saint Pierre and Miquelon.

4. Overseas countries of the Kingdom of the Netherlands:

- Aruba,

- Netherlands Antilles:

- Bonaire,

- Curaçao,

- Saba,

- Sint Eustatius,

- Sint Maarten.

5. British overseas countries and territories :

- Anguilla,

- Cayman Islands,

- Falkland Islands,

- South Georgia and South Sandwich Islands,

- Montserrat,

- Pitcairn,

- Saint Helena, Ascension Island, Tristan da Cunha

- British Antarctic Territory,

- British Indian Ocean Territory,

- Turks and Caicos Islands,

- British Virgin Islands.

ANNEX IV to Protocol 1 Form for movement certificate

1. Movement certificates EUR.1 shall be made out on the form of which a specimen appears in this Annex. This form shall be printed in one or more of the languages in which the Agreement is drawn up. Certificates shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State if they are handwritten, they shall be completed in ink and in capital letters.

2. Each certificate shall measure 210 x 297mm, a tolerance of up to plus 8mm or minus 5mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 60g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

3. The exporting States may reserve the right to print the certificates themselves or may have them printed by approved printers. In the latter case each certificate must include a reference to such approval. Each certificate must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

4. Forms of the kind given in Annex 4 to Decision No 1/89 of the ACP-EEC Council of Ministers may continue to be used until stocks are exhausted or until 31 December 1992 at the latest.

MOVEMENT CERTIFICATE

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(1) If goods are not packed, indicate number of articles or state "In bulk" as appropriate

(2) Complete only where the regulations of the exporting country or territory require

13. Request for verification, to: // 14. Result of verification

// Verification carried out shows that this certificate (*)

was issued by the customs office indicated and that the information contained therein is accurate.

does not meet the requirements as to authenticity and accuracy (see remarks appended).

Verification of the authenticity and accurancy of this certificate is requested

(Place and date)

Stamp

(Signature)

//

(Place and date)

Stamp

(Signature)

________________________

(*) Insert X in the appropriate box.

NOTES

1. Certificates must not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialled by the person who completed the certificate and endorsed by the customs authorities of the issuing country or territory.

2. No spaces must be left between the items entered on the certificate and each item must be preceded by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible.

3. Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.

APPLICATION FOR A MOVEMENT CERTIFICATE

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(1) If goods are not packed, indicate number of articles or state "In bulk" as appropriate

DECLARATION BY THE EXPORTER

I, the undersigned, exporter of the goods described overleaf,

DECLARE that the goods meet the conditions required for the issue of the attached certificate;

SPECIFY as follows the circumstances which have enabled these goods to meet the above conditions:

SUBMIT the following supporting documents

UNDERTAKE to submit, at the request of the appropriate authorities, any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;

REQUEST the issue of the attached certificate for these goods.

(Place and date)

(Signature)

ANNEX V to Protocol 1 Invoice declaration

The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

English version

The exporter of the products covered by this document (customs authorization No ... () declares that, except where otherwise clearly indicated, these products are of ... preferential origin (2

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera n° ... (1)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial ... (2).

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. ... (1)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ... (2).

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ... (1), der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anders angegeben, präferenzbegünstigte ... Ursprungswaren sind (2)

Greek version

Ï åîáãùãÝáò ôùí ðñïúüíôùí ðïõ êáëýðôïíôáé áðü ôï ðáñüí Ýããñáöï (Üäåéá ôåëùíåßïõ õð´áñéè. .... (1)) äçëþíåé üôé, åêôüò åÜí äçëþíåôáé óáöþò Üëëùò, ôá ðñïúüíôá áõôÜ åßíáé ðñïôéìçóéáêÞò êáôáãùãÞò .... (2).

French version

L'exportateur des produits couverts par le présent document (autorisation douanière n° ... (1)), déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle ... (2).

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ... (1)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ... (2).

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ... () verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn (2

Portuguese version

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira n° ... (1)), declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial ... (2).

Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupan:o ... (1)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita (2).

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ... (1)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung (2).

(3

(Place and date)

(4

(Signature of the exporter; in addition the name of the person signing the declaration has to be indicated in clear script)

ANNEX VIA to Protocol 1 Supplier declaration for products having preferential origin status

I, the undersigned, declare that the goods listed on this invoice ....................................................(1)

were produced in ................................(2) and satisfy the rules of origin governing preferential trade between the ACP States and the

European Community.

I undertake to make available to the customs authorities, if required, evidence in support of this declaration.

...................................................................(3) ..........................................................................................(4)

................................................(5)

Note

The text inside the box, suitably completed in conformity with the footnotes below, constitutes a suppliers' declaration. The footnotes do not have to be reproduced.

(1) - If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this marking entered on the declaration as follows:'............................ listed on this invoice and marked ....................were produced ...............................'

- If a document other than an invoice or an annex to the invoice is used (see Article 3), the name of the document concerned shall be mentioned instead of the word 'invoice'

(2) The Community Member State or OCT. Where an ACP State or an OCT is given, a reference must also be made to the Community customs office holding any EUR.1 (s) or EUR. 2(s) concerned, giving the No of the certificate(s) or form(s) concerned and, if possible, the relevant customs entry No involved.

(3) Place and date

(4) Name and function in company

(5) Signature

ANNEX VIB to Protocol 1 Supplier declaration for products not having preferential original status

I, the undersigned, declare that the goods listed on this invoice ....................(1) were produced in ......................(2) and incorporate the following components or materials which do not have ACP, OCT or Community origin for preferential trade:

...................................................................(3) .......................................................(4) ................................................(5)

....................................................... .................................................. ...................................................

...................................................... .................................................. ....................................................

............................................................................................................................................................................................(6)

I undertake to make available to the customs authorities, if required, evidence in support of this declaration.

..............................................................................(7) ...............................................................(8)

.................................................................(9)

Note

The text inside the box, suitably completed in conformity with the footnotes below, constitutes a suppliers' declaration. The footnotes do not have to be reproduced.

(1) - If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this marking entered on the declaration as follows:'............................ listed on this invoice and marked ....................were produced ...............................'

- If a document other than an invoice or an annex to the invoice is used (see Article 3), the name of the document concerned shall be mentioned instead of the word 'invoice'

(2) The Community ,Member State or OCT.

(3) Description is to be given in all cases. The description must be adequate and should be sufficiently detailed to allow the tariff classification of the goods concerned to be determined.

(4) Customs values to be given only if required

(5) Country of origin to be given only if required. The origin to be given must be a preferential origin, all other origins to be given as 'third country'.

(6) 'and have undergone the following processing in [ the Community] [Member state] [ACP State] [OCT] ................................., to be added with a description of the processing carried out if this information is required.

(7) Place and date

(8) Name and function in company

(9) Signature

ANNEX VII to protocol 1 information certificate

1. The form of information certificate given in this annex shall be used and be printed in one or more of the official languages in which the Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting State. Information certificates shall be completed in one of those languages; if they are handwritten, they shall be completed in ink in capital letters. They shall bear a serial number, whether or not printed, by which they can be identified.

//

2. The information certificate shall measure 210 x 297mm, a tolerance of up to plus 8mm or minus 5mm in the length may be allowed. The paper must be white, sized for writing, not containing mechanical pulp and weighing not less than 65g/m2.

//

3. The national administrators may reserve the right to print the forms themselves or may have them printed by printers approved by them. In the latter case, each form must include a reference to such approval. The forms shall bear the name and address of the printer or a mark by which the printer can be identified.

//

European Communities

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(1) (2) (3) (4) (5) See footnotes on verso

REQUEST FOR VERIFICATION // RESULT OF VERIFICATION

The undersigned customs official requests verification of the authenticity

and accuracy of this information certificate. // Verification carried out by the undersigned customs official shows that this

information certificate:

//

// a) was issued by the customs office indicated and that the information contained therein is accurate (*)

//

//

// b) does not meet the requirements as to authenticity and accuracy (see notes appended) (*)

//

//

//

------------------------------------------------------------------------------------------ // ------------------------------------------------------------------------------------------------

(Place and date) // (Place and date)

//

//

-------------------------------------------------------------------------- // ----------------------------------------------------------------------------------------------------

(Official's signature) // (Official's signature)

//

//

// (*) Delete where not applicable

CROSS REFERENCES

(1) Name of individual or business and full address.

(2) Optional information.

(3) Kg, hl, m 10 9 8 7 6 5 4 3 2 [1] or other measure.

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]

(4) Packaging shall be considered as forming a whole with the goods contained therein. However, this provision shall not apply to packaging which is not of the normal type for the article packed, and which has a lasting utility value of its own, apart from its function as packaging.

(5) The value must be indicated in accordance with the provisions on rules of origin.

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

ANNEX VIII to Protocol 1 Form for application for a derogation

1. Commercial description of the finished product

1.1 Customs classification (H.S. code) // 2. Anticipated annual quantity of exports to the Community (weight, No of pieces, meters or other unit)

3. Commercial description of third country materials

Customs classification (H. S. code) // 4. Anticipated annual quantity of third country materials to be used

5. Value of third country materials // 6. Value of finished products

7. Origin of third country materials // 8. Reasons why the rule of origin for the finished product cannot be fulfilled

9. Commercial description of materials originating in the ACP States, EC or OCT to be used // 10. Anticipated annual quantity of ACP, EC or OCT materials to be used

11. Value of ACP, EC or OCT materials // 12. Working or processing carried out in the EC or OCT on third country materials without obtaining origin

>REFERENCE TO A GRAPHIC>

13. Duration requested for derogation

from............................... to...................................... //

14. Detailed description of working and processing in the ACP States: // 15. Capital structure of the firm concerned

>REFERENCE TO A GRAPHIC>

>REFERENCE TO A GRAPHIC>

// 16. Amount of investments made/foreseen

// 17. Staff employed/expected

18. Value added by the working or processing in the ACP States:

18.1 Labour:

18.2 Overheads:

18.3 Others:

// 20. Possible developments to overcome the need for a derogation

19. Other possible sources of supply for materials // 21. Observations

NOTES

1. If the boxes in the form are not sufficient to contain all relevant information, additional pages may be attached to the form. In this case, the mention 'see annex' shall be entered in the box concerned.

2. If possible, samples or other illustrative material (pictures, designs, catalogues, etc) of the final product and of the materials should accompany the form.

3. A form shall be completed for each product covered by the request.

Boxes 3,4,5,7: "third country" means any country which is not an ACP or Community State or OCT.

Box 12: If third country materials have been worked or processed in the Community or in the OCT without obtaining origin, before being further processed in the ACP State requesting the derogation, indicate the working or processing carried out in the Community or OCT.

Box 13: The dates to be indicated are the initial and final one for the period in which EUR 1 certificates may be issued under the derogation.

Box 18: Indicate either the percentage of added value in respect of the ex-works price of the product or the monetary amount of added-value for unit of product.

Box 19: If alternative sources of material exist, indicate here what they are and, if possible, the reasons of cost or other reasons why they are not used.

Box 20: Indicate possible further investments or suppliers' differentiation which make the derogation necessary for only a limited period of time.

ANNEX IX to Protocol 1 List working or processing conferring the character of ACP origin on a product obtained when working or processing is carried out on textile materials originating in developing countries referred to in Article 6(11) of this Protocol

Textiles and textile articles falling within Section XI

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(1) The term 'prebleached', used in the list in Annex IX to characterize the level of manufacture required when certain non-originating materials are used, applies to certain yarns, woven fabrics and knitted or crocheted fabrics which have only been washed after the spinning or weaving operation.

(2) However, to be regarded as a working or processing conferring origin, thermoprinting has to be accompanied by printing of the transfer paper.

(3) The term 'Impregnation, coating, covering or laminating' does not cover those operations designed to bind fabrics together.

(4) The term 'complete making-up' used in the list in Annex IX means that all the operations following cutting of the fabric or knitting or crocheting of the fabric directly to shape have to be performed.

However, making-up shall not necessarily be considered as incomplete where one or more finishing operations have not been carried out.

The following is a list of examples of finishing operations:

- fitting of buttons and/or other types of fastenings,

- making of button-holes,

- finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses,

- fitting of trimmings and accessories such as pockets, labels, badges, etc,

- ironing and other preparations of garments for sale 'ready made'.

Remarks concerning finishing operations - Special cases

It is possible that in particular manufacturing operations, the accomplishment of finishing operations, especially in the case of a combination of operations, is of such importance that these operations must be considered as going beyond simple finishing. In these particular cases, the non-accomplishing of finishing operations will deprive the making-up of its complete nature.

ANNEX X to Protocol 1 Textile products excluded from the cumulation procedure with certain developing countries referred to in Article 6(11) of this Protocol

6101 10 90

6101 20 90

6101 30 90

6102 10 90

6102 20 90

6102 30 90

6110 10 10

6110 10 31

6110 10 35

6110 10 38

6110 10 91

6110 10 95

6110 10 98

6110 20 91

6110 20 99

6110 30 91

6110 30 99 // Jerseys, pullovers, slip-overs, waistcoats, twinsets, cardigans, bed-jackets and jumpers (other than jackets and blazers), anoraks, windcheaters, waister jackets and the like, knitted or crocheted

6203 41 10

6203 41 90

6203 42 31

6203 42 33

6203 42 35

6203 42 90

6203 43 19

6203 43 90

6203 49 19

6203 49 50

6204 61 10

6204 62 31

6204 62 33

6204 62 39

6204 63 18

6204 69 18

6211 32 42

6211 33 42

6211 42 42

6211 43 42 // Men's or boys' woven breeches, shorts other than swimwear and trousers (including slacks); women's or girls' woven trousers and slacks, of wool, of cotton or of man-made fibres, lower parts of tracksuits with lining, other than category 16 or 29, of cotton or of man-made fibres

ANNEX XI to Protocol 1 Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 3 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

Industrial Products

CN code 96

Salt (including table salt and denatured salt)

25010051

25010091

25010099

Alkali or alkaline-earth metals; rare-earth metals

28051100

28051900

28052100

28052200

28053010

28053090

28054010

Ammonia, anhydrous or in aqueous solution :

28141000

28142000

Sodium hydroxide (caustic soda);

28151100

28151200

Zinc oxide; zinc peroxide.

28170000

Artificial corundum,

28181000

28182000

28183000

Chromium oxides and hydroxides :

28191000

28199000

Manganese oxides :

28201000

28209000

Titanium oxides.

28230000

CN code 96

Hydrazine and hydroxylamine

28258000

Chlorides, chloride oxides and chloride hydroxides

28271000

Sulphides; polysulphides :

28301000

Phosphinates (hypophosphites), phosphonates

28351000

28352200

28352300

28352400

28352510

28352590

28352610

28352690

28352910

28352990

28353100

28353910

28353930

28353970

Carbonates; peroxocarbonates (percarbonates);

28362000

28364000

28366000

Salts of oxometallic or peroxometallic acids :

28416100

Radioactive chemical elements

28443011

28443019

28443051

Isotopes other than those of heading No 2844;

28451000

28459010

Carbides, whether or not chemically defined :

28492000

28499030

Hydrides, nitrides, azides, silicides and borides,

28500070

Cyclic hydrocarbons :

29025000

Halogenated derivatives of hydrocarbons :

29031100

29031200

29031300

29031400

29031500

29031600

29031910

29031990

29032100

29032300

CN code 96

29032900

29033010

29033031

29033033

29033038

29033090

29034100

29034200

29034300

29034410

29034490

29034510

29034515

29034520

29034525

29034530

29034535

29034540

29034545

29034550

29034555

29034590

29034610

29034620

29034690

29034700

29034910

29034920

29034990

29035190

29035910

29035930

29035990

29036100

29036200

29036910

29036990

Acyclic alcohols and their halogenated, sulphonate

29051100

29051200

29051300

29051410

29051490

29051500

29051610

29051690

29051700

29051910

29051990

29052210

29052290

29052910

29052990

29053100

29053200

29053910

29053990

29054100

29054200

29054910

29054951

29054959

29054990

29055010

CN code 96

29055030

29055099

Phenols; phenol-alcohols :

29071100

29071500

29072210

Ethers, ether-alcohols, ether-phenols,

29091100

29091900

29092000

29093031

29093039

29093090

29094100

29094200

29094300

29094400

29094910

29094990

29095010

29095090

29096000

Epoxides, epoxyalcohols, epoxyphenols and epoxyethols

29102000

Aldehydes, whether or not with other oxygen functions

29124100

29126000

Ketones and quinones, whether or not with other oxygen fonctions

29141100

29142100

Saturated acyclic monocarboxylic acids

29151100

29151200

29151300

29152100

29152200

29152300

29152400

29152900

29153100

29153200

29153300

29153400

29153500

29153910

29153930

29153950

29153990

29154000

29155000

29156010

29156090

29157015

29157020

29157025

29157030

29157080

29159010

CN code 96

29159020

29159080

Unsaturated acyclic monocarboxylic acids,

29161210

29161220

29161290

29161410

29161490

Polycarboxylic acids, their anhydrides, halides

29171100

29171400

29173500

29173600

29173700

Carboxylic acids with additional oxygen function

29181400

29181500

29182200

29189000

Amine-function compounds

29211110

29211190

29211200

29211910

29211930

29211990

29212100

29212200

29212900

29213010

29213090

29214100

29214210

29214290

29214310

29214390

29214400

29214500

29214910

29214990

29215110

29215190

29215900

Oxygen-function amino-compounds

29221100

29221200

29221300

29221900

29222100

29222200

29222900

29223000

29224210

29224300

29224980

29225000

CN code 96

Carboxyamide-function compounds;

29242110

29242190

29242930

Nitrile-function compounds :

29261000

29269090

Organo-sulphur compounds :

29302000

29309012

29309014

29309016

Other organo-inorganic compounds :

29310040

Heterocyclic compounds with oxygen hetero-atom(s)

29321200

29321300

29322100

Heterocyclic compounds with nitrogen hetero-atom(s)

29336100

Sulphonamides.

29350000

Mineral or chemical fertilizers, nitrogenous :

31021010

31021090

31022100

31022900

31023010

31023090

31024010

31024090

31025090

31026000

31027090

31028000

31029000

Mineral or chemical fertilizers, phosphatic :

31031010

31031090

Mineral or chemical fertilizers

31051000

31052010

31052090

31053010

31053090

31054010

31054090

31055100

31055900

31056010

31056090

31059091

31059099

CN code 96

Tanning extracts of vegetable origin;

32012000

32019020

Other colouring matter;

32061100

32061900

32062000

32063000

32064100

32064200

32064300

32064990

32065000

Activated carbon; activated natural mineral products

38021000

38029000

Insecticides, rodenticides, fungicides, herbicides

38081020

38081030

38083011

38083013

38083015

38083017

38083021

38083023

38083027

38083030

38083090

Prepared rubber accelerators; compound plasticiser

38123020

Organic composite solvents and thinners,

38140090

Mixed alkylbenzenes and mixed alkylnaphthalenes,

38171010

38171050

38171080

38172000

Prepared binders for foundry moulds or cores;

38249090

Polymers of ethylene, in primary forms :

39011010

39011090

39012000

39013000

39019000

Polymers of propylene or of other olefins,

39021000

39022000

39023000

39029000

CN code 96

Polymers of styrene, in primary forms :

39031100

39031900

39032000

39033000

39039000

Polymers of vinyl chloride

39041000

39042100

39042200

39043000

39044000

39045000

39046190

39046900

39049000

Polymers of vinyl acetate

39051200

Polyacetals, other polyethers and epoxide resins,

39072019

39072090

39076090

39079110

39079190

39079910

39079990

Other plates, sheets, film, foil and strip,

39201022

39201028

39201040

39201080

39202021

39202029

39202071

39202079

39202090

39203000

39204111

39204119

39204191

39204199

39204211

39204219

39204291

39204299

39205100

39205900

39206100

39206210

39206290

39206300

39206900

39207111

39207119

39207190

39207200

39207310

39207350

39207390

39207900

CN code 96

39209100

39209200

39209300

39209400

39209911

39209919

39209950

39209990

Other plates, sheets, film, foil and strip,

39219019

Articles for the conveyance or packing of goods,

39232100

Retreaded or used pneumatic tyres of rubber;

40121030

40121050

40121080

40122090

40129010

40129090

Inner tubes, of rubber :

40131010

40131090

40132000

40139010

40139090

Leather of bovine or equine animals, without hair

41041091

41041095

41041099

41042100

41042290

41042900

41043111

41043119

41043130

41043190

41043910

41043990

Sheep or lamb skin leather, without wool on,

41052000

Leather of other animals, without hair on,

41071010

41072910

41079010

41079090

Chamois (including combination chamois) leather :

41080010

41080090

Patent leather and patent laminated leather;

41090000

Composition leather with a basis of leather or leather

41110000

CN code 96

Articles of apparel and clothing accessories,

42031000

42032100

42032910

42032991

42032999

42033000

42034000

Particle board and similar board of wood

44101100

44101910

44101930

44101950

44101990

44109000

Fibreboard of wood or other ligneous materials,

44111100

44111900

44112100

44112900

44113100

44113900

44119100

44119900

Plywood, veneered panels and similar laminated wood

44121311

44121319

44121390

44121400

44121900

44122210

44122291

44122299

44122300

44122920

44122980

44129210

44129291

44129299

44129300

44129920

44129980

Builders' joinery and carpentry of wood,

44181010

44181050

44181090

44182010

44182050

44182080

44183010

44189010

Wood marquetry and inlaid wood; caskets and cases

44209011

44209019

Articles of natural cork :

45031010

45031090

CN code 96

45039000

Plaits and similar products of plaiting materials

46019910

Basketwork, wickerwork and other articles,

46029010

Registers, account books, note books, order books

48201030

Children's picture, drawing or colouring books.

49030000

Maps and hydrographic or similar charts of all kinds

49051000

Transfers (decalcomanias) :

49081000

49089000

Printed or illustrated postcards; printed cards

49090010

49090090

Calendars of any kind, printed, including calendars

49100000

Other printed matter, including printed pictures

49111010

49111090

49119180

49119900

Silk yarn (other than yarn spun from silk waste)

50040010

50040090

Yarn spun from silk waste, not put up for retail sale

50050010

50050090

Silk yarn and yarn spun from silk waste, put up for retail sale :

50060010

50060090

Woven fabrics of silk or of silk waste :

50071000

50072011

50072019

50072021

50072031

50072039

50072041

50072051

50072059

50072061

50072069

50072071

50079010

50079030

50079050

50079090

CN code 96

Yarn of carded wool, not put up for retail sale :

51061010

51061090

51062011

51062019

51062091

51062099

Yarn of combed wool, not put up for retail sale :

51071010

51071090

51072010

51072030

51072051

51072059

51072091

51072099

Yarn of fine animal hair (carded or combed), not put up for retail sale :

51081010

51081090

51082010

51082090

Yarn of wool or of fine animal hair, put up for retail sale :

51091010

51091090

51099010

51099090

Yarn of coarse animal hair or of horsehair

51100000

Woven fabrics of carded wool or of carded fine animal hair

51111111

51111119

51111191

51111199

51111911

51111919

51111931

51111939

51111991

51111999

51112000

51113010

51113030

51113090

51119010

51119091

51119093

51119099

Woven fabrics of combed wool or of combed fine animal hair

51121110

51121190

51121911

51121919

51121991

51121999

51122000

51123010

51123030

CN code 96

51123090

51129010

51129091

51129093

51129099

Woven fabrics of coarse animal hair or of horsehair

51130000

Cotton sewing thread, whether or not put up for retail sale

52041100

52041900

52042000

Cotton yarn (other than sewing thread),

52051100

52051200

52051300

52051400

52051510

52051590

52052100

52052200

52052300

52052400

52052600

52052700

52052800

52053100

52053200

52053300

52053400

52053510

52053590

52054100

52054200

52054300

52054400

52054600

52054700

52054800

Cotton yarn (other than sewing thread),

52061100

52061200

52061300

52061400

52061510

52061590

52062100

52062200

52062300

52062400

52062510

52062590

52063100

52063200

52063300

52063400

52063510

52063590

52064100

52064200

52064300

52064400

CN code 96

52064510

52064590

Cotton yarn (other than sewing thread) put up for retail sale

52071000

52079000

Flax yarn :

53061011

530610191

53061031

53061039

53061050

53061090

53062011

53062019

53062090

Yarn of other vegetable textile fibres; paper yarn

53082010

53082090

53083000

53089011

53089013

53089019

53089090

Woven fabrics of flax :

53091111

53091119

53091190

53091910

53091990

53092110

53092190

53092910

53092990

Woven fabrics of jute or of other textile bast fibres

53101010

53101090

53109000

Woven fabrics of other vegetable textile fibres;

53110010

53110090

Sewing thread of man-made filaments,

54011011

54011019

54011090

54012010

54012090

Synthetic filament yarn (other than sewing thread)

54021010

54021090

54022000

54023110

54023130

54023190

54023200

54023310

54023390

CN code 96

54023910

54023990

54024110

54024130

54024190

54024200

54024310

54024390

54024910

54024991

54024999

54025110

54025130

54025190

54025210

54025290

54025910

54025990

54026110

54026130

54026190

54026210

54026290

54026910

54026990

Artificial filament yarn (other than sewing thread)

54031000

54032010

54032090

54033100

54033200

54033310

54033390

54033900

54034100

54034200

54034900

Synthetic monofilament of 67 decitex or more

54041010

54041090

54049011

54049019

54049090

Artificial monofilament of 67 decitex or more

54050000

Man-made filament yarn (other than sewing thread),

54061000

54062000

Woven fabrics of synthetic filament yarn,

54071000

54072011

54072019

54072090

54073000

54074100

54074200

54074300

54074400

54075100

54075200

CN code 96

54075300

54075400

54076110

54076130

54076150

54076190

54076910

54076990

54077100

54077200

54077300

54077400

54078100

54078200

54078300

54078400

54079100

54079200

54079300

54079400

Woven fabrics of artificial filament yarn,

54081000

54082100

54082210

54082290

54082310

54082390

54082400

54083100

54083200

54083300

54083400

Synthetic filament tow :

55011000

55012000

55013000

55019000

Artificial filament tow :

55020010

55020090

Synthetic staple fibres, not carded, combed or otherwise

55031011

55031019

55031090

55032000

55033000

55034000

55039010

55039090

Artificial staple fibres, not carded, combed or otherwise

55041000

55049000

Waste (including noils, yarn waste)

55051010

55051030

55051050

55051070

55051090

CN code 96

55052000

Synthetic staple fibres, carded, combed or otherwise

55061000

55062000

55063000

55069010

55069091

55069099

Artificial staple fibres, carded, combed or otherwise

55070000

Sewing thread of man-made staple fibres,

55081011

55081019

55081090

55082010

55082090

Yarn (other than sewing thread) of synthetic staple fibres

55091100

55091200

55092110

55092190

55092210

55092290

55093110

55093190

55093210

55093290

55094110

55094190

55094210

55094290

55095100

55095210

55095290

55095300

55095900

55096110

55096190

55096200

55096900

55099110

55099190

55099200

55099900

Yarn (other than sewing thread) of artificial staple fibres

55101100

55101200

55102000

55103000

55109000

Yarn (other than sewing thread) of man-made staple fibres

55111000

55112000

55113000

Wadding of textile materials and articles thereof,

56011010

56011090

CN code 96

56012110

56012190

56012210

56012291

56012299

56012900

56013000

Felt, whether or not impregnated,

56021011

56021019

56021031

56021035

56021039

56021090

56022100

56022910

56022990

56029000

Nonwovens, whether or not impregnated,

56031110

56031190

56031210

56031290

56031310

56031390

56031410

56031490

56039110

56039190

56039210

56039290

56039310

56039390

56039410

56039490

Rubber thread and cord, textile covered;

56041000

56042000

56049000

Metallised yarn, whether or not gimped,

56050000

Gimped yarn, and strip

56060010

56060091

56060099

Articles of yarn, strip

56090000

Carpets and other textile floor coverings,

57011010

57011091

57011093

57011099

57019010

57019090

CN code 96

Woven pile fabrics and chenille fabrics,

58011000

58012100

58012200

58012300

58012400

58012500

58012600

58013100

58013200

58013300

58013400

58013500

58013600

58019010

58019090

Terry towelling and similar woven terry fabrics,

58021100

58021900

58022000

58023000

Gauze, other than narrow fabrics

58031000

58039010

58039030

58039050

58039090

Tulles and other net fabrics, not including woven,

58041011

58041019

58041090

58042110

58042190

58042910

58042990

58043000

Hand-woven tapestries of the type Gobelins,

58050000

Narrow woven fabrics,

58061000

58062000

58063110

58063190

58063210

58063290

58063900

58064000

Labels, badges and similar articles of textile matter

58071010

58071090

58079010

58079090

Braids in the piece; ornamental trimmings

58081000

58089000

CN code 96

Woven fabrics of metal thread and woven fabrics

58090000

Embroidery in the piece, in strips or in motifs :

58101010

58101090

58109110

58109190

58109210

58109290

58109910

58109990

Quilted textile products in the piece,

58110000

Textile fabrics coated with gum

59011000

59019000

Tyre cord fabric of high tenacity yarn of nylon

59021010

59021090

59022010

59022090

59029010

59029090

Textile fabrics impregnated, coated, covered

59031010

59031090

59032010

59032090

59039010

59039091

59039099

Linoleum, whether or not cut to shape;

59041000

59049110

59049190

59049200

Textile wall coverings :

59050010

59050031

59050039

59050050

59050070

59050090

Rubberized textile fabrics,

59061010

59061090

59069100

59069910

59069990

CN code 96

Textile fabrics otherwise impregnated, coated or covered

59070010

59070090

Textile wicks, woven, plaited or knitted,

59080000

Textile hosepiping and similar textile tubing,

59090010

59090090

Transmission or conveyor belts or belting,

59100000

Textile products and articles, for technical uses,

59111000

59112000

59113111

59113119

59113190

59113210

59113290

59114000

59119010

59119090

Pile fabrics, including 'long pile' fabrics

60011000

60012100

60012200

60012910

60012990

60019110

60019130

60019150

60019190

60019210

60019230

60019250

60019290

60019910

60019990

Men's or boys' overcoats, car-coats, capes, cloaks

61011010

61011090

61012010

61012090

61013010

61013090

61019010

61019090

Women's or girls' overcoats, car-coats, capes, cloaks

61021010

61021090

61022010

61022090

61023010

61023090

61029010

61029090

CN code 96

Men's or boys' suits, ensembles, jackets, blazers,

61034110

61034190

61034210

61034290

61034310

61034390

61034910

61034991

61034999

Women's or girls' suits, ensembles, jackets, blazers

61045100

61045200

61045300

61045900

61046110

61046190

61046210

61046290

61046310

61046390

61046910

61046991

61046999

Men's or boys' underpants, briefs, nightshirts, pyjamas

61071100

61071200

61071900

61072100

61072200

61072900

61079110

61079190

61079200

61079900

Women's or girls' slips, petticoats, briefs, panties

61081110

61081190

61081910

61081990

61082100

61082200

61082900

61083110

61083190

61083211

61083219

61083290

61083900

61089110

61089190

61089200

61089910

61089990

T-shirts, singlets and other vests, knitted or crocheted

61091000

61099010

61099030

CN code 96

Track suits, ski suits and swimwear, knitted or crocheted

61121100

61121200

61121900

61122000

61123110

61123190

61123910

61123990

61124110

61124190

61124910

61124990

Garments, made up of knitted or crocheted fabrics

61130010

61130090

Other garments, knitted or crocheted :

61141000

61142000

61143000

61149000

Panty hose, tights, stockings, socks and other hosiery

61151100

61151200

61151910

61151990

61152011

61152019

61152090

61159100

61159200

61159310

61159330

61159391

61159399

61159900

Gloves, mittens and mitts, knitted or crocheted :

61161020

61161080

61169100

61169200

61169300

61169900

Other made up clothing accessories, knitted or crocheted

61171000

61172000

61178010

61178090

61179000

Men's or boys' overcoats, car-coats, capes, cloaks

62011100

62011210

62011290

62011310

62011390

62011900

62019100

CN code 96

62019200

62019300

62019900

Women's or girls' overcoats, car-coats, capes, cloaks

62021100

62021210

62021290

62021310

62021390

62021900

62029100

62029200

62029300

62029900

Men's or boys' suits, ensembles, jackets, blazers,

62034110

62034130

62034190

62034211

62034231

62034233

62034235

62034251

62034259

62034290

62034311

62034319

62034331

62034339

62034390

62034911

62034919

62034931

62034939

62034950

62034990

Women's or girls' suits, ensembles, jackets, blazers

62045100

62045200

62045300

62045910

62045990

62046110

62046180

62046190

62046211

62046231

62046233

62046239

62046251

62046259

62046290

62046311

62046318

62046331

62046339

62046390

62046911

62046918

62046931

62046939

62046950

CN code 96

62046990

Men's or boys' shirts :

62051000

62052000

62053000

62059010

62059090

Men's or boys' singlets and other vests, underpants

62071100

62071900

62072100

62072200

62072900

62079110

62079190

62079200

62079900

Women's or girls' singlets and other vests, slips,

62081100

62081910

62081990

62082100

62082200

62082900

62089111

62089119

62089190

62089210

62089290

62089900

Brassières, girdles, corsets, braces, suspenders,

62121000

62122000

62123000

62129000

Handkerchiefs :

62131000

62132000

62139000

Shawls, scarves, mufflers, mantillas, veils

62141000

62142000

62143000

62144000

62149010

62149090

Ties, bow ties and cravats :

62151000

62152000

62159000

Gloves, mittens and mitts.

62160000

CN code 96

Other made up clothing accessories;

62171000

62179000

Blankets and travelling rugs :

63011000

63012010

63012091

63012099

63013010

63013090

63014010

63014090

63019010

63019090

Sacks and bags,

63051010

63051090

63052000

63053211

63053281

63053289

63053290

63053310

63053391

63053399

63053900

63059000

Tarpaulins, awnings and sunblinds; tents; sails

63061100

63061200

63061900

63062100

63062200

63062900

63063100

63063900

63064100

63064900

63069100

63069900

Other made up articles, including dress patterns :

63071010

63071030

63071090

63072000

63079010

63079091

63079099

Sets consisting of woven fabric and yarn,

63080000

Worn clothing and other worn articles.

63090000

Waterproof footwear with outer soles and uppers of rubber

64011010

64011090

64019110

CN code 96

64019190

64019210

64019290

64019910

64019990

Other footwear with outer soles and uppers of rubber

64021210

64021290

64021900

64022000

64023000

64029100

64029910

64029931

64029939

64029950

64029991

64029993

64029996

64029998

Footwear with outer soles of rubber, plastics, leather

64031200

64031900

64032000

64033000

64034000

64035111

64035115

64035119

64035191

64035195

64035199

64035911

64035931

64035935

64035939

64035950

64035991

64035995

64035999

64039111

64039113

64039116

64039118

64039191

64039193

64039196

64039198

64039911

64039931

64039933

64039936

64039938

64039950

64039991

64039993

64039996

64039998

Footwear with outer soles of rubber, plastics, leather

64041100

64041910

64041990

CN code 96

64042010

64042090

Other footwear :

64051010

64051090

64052010

64052091

64052099

64059010

64059090

Parts of footwear (including uppers)

64061011

64061019

64061090

64062010

64062090

64069100

64069910

64069930

64069950

64069960

64069980

Unglazed ceramic flags and paving, hearth or wall tiles

69071000

69079010

69079091

69079093

69079099

Glazed ceramic flags and paving, hearth or wall tiles

69081010

69081090

69089011

69089021

69089029

69089031

69089051

69089091

69089093

69089099

Tableware, kitchenware, other household articles

69111000

69119000

Ceramic tableware, kitchenware, other household articles

69120010

69120030

69120050

69120090

Statuettes and other ornamental ceramic articles :

69131000

69139010

69139091

69139093

69139099

Glassware of a kind used for table, kitchen,

70131000

70132111

CN code 96

70132119

70132191

70132199

70132910

70132951

70132959

70132991

70132999

70133110

70133190

70133200

70133910

70133991

70133999

70139110

70139190

70139910

70139990

Glass fibres (including glass wool)

70191100

70191200

70191910

70191990

70193100

70193200

70193910

70193990

70194000

70195110

70195190

70195200

70195910

70195990

70199010

70199030

70199091

70199099

Other articles of precious metal

71159010

71159090

Ferro-alloys :

72025000

72027000

72029100

72029200

72029930

72029980

Copper bars, rods and profiles :

74071000

74072110

74072190

74072210

74072290

74072900

Copper wire :

74081100

74081910

74081990

74082100

CN code 96

74082200

74082900

Copper plates, sheets and strip,

74091100

74091900

74092100

74092900

74093100

74093900

74094010

74094090

74099010

74099090

Copper foil (whether or not printed or backed with

74101100

74101200

74102100

74102200

Copper tubes and pipes :

74111011

74111019

74111090

74112110

74112190

74112200

74112910

74112990

Copper tube or pipe fittings

74121000

74122000

Stranded wire, cables, plaited bands and the like,

74130091

74130099

Cloth (including endless bands), grill and netting

74142000

74149000

Nails, tacks, drawing pins, staples

74151000

74152100

74152900

74153100

74153200

74153900

Copper springs.

74160000

Cooking or heating apparatus

74170000

Table, kitchen or other household articles

74181100

74181900

74182000

CN code 96

Other articles of copper :

74191000

74199100

74199900

Aluminium bars, rods and profiles :

76041010

76041090

76042100

76042910

76042990

Aluminium wire :

76051100

76051900

76052100

76052900

Aluminium plates, sheets and strip,

76061110

76061191

76061193

76061199

76061210

76061250

76061291

76061293

76061299

76069100

76069200

Aluminium foil

76071110

76071190

76071910

76071991

76071999

76072010

76072091

76072099

Aluminium tubes and pipes :

76081090

76082030

76082091

76082099

Aluminium tube or pipe fittings

76090000

Aluminium structures

76101000

76109010

76109090

Aluminium reservoirs, tanks, vats

76110000

Aluminium casks, drums, cans, boxes

76121000

76129010

76129020

76129091

76129098

CN code 96

Aluminium containers for compressed or liquefied

76130000

Stranded wire, cables, plaited bands and the like,

76141000

76149000

Table, kitchen or other household articles

76151100

76151910

76151990

76152000

Other articles of aluminium :

76161000

76169100

76169910

76169990

Unwrought lead :

78011000

78019100

78019991

78019999

Tungsten (wolfram) and articles thereof, including waste

81011000

81019110

Molybdenum and articles thereof, including waste

81021000

81029110

81029300

Magnesium and articles thereof, including waste

81041100

81041900

Cadmium and articles thereof, including waste

81071010

Titanium and articles thereof, including waste

81081010

81081090

81089030

81089050

81089070

81089090

Zirconium and articles thereof, including waste

81091010

81099000

Antimony and articles thereof, including waste

81100011

81100019

Beryllium, chromium, germanium, vanadium, gallium,

81122031

81123020

81123090

81129110

81129131

CN code 96

81129930

Cermets and articles thereof, including waste

81130020

81130040

Nuclear reactors; fuel elements (cartridges),

84011000

84012000

84013000

84014010

84014090

Hydraulic turbines, water wheels, and regulators

84101100

84101200

84101300

84109010

84109090

Turbo-jets, turbo-propellers and other gas turbines

84111190

84111290

84112190

84112290

84118190

84118291

84118293

84118299

84119190

84119990

Air or vacuum pumps, air or other gas compressors

84141030

84141050

84141090

84142091

84142099

84143030

84143091

84143099

84144010

84144090

84145190

84145930

84145950

84145990

84146000

84148021

84148029

84148031

84148039

84148041

84148049

84148060

84148071

84148079

84148090

84149090

Fork-lift trucks; other works trucks

84271010

84271090

84272011

CN code 96

84272019

84272090

84279000

Sewing machines, other than book-sewing machines

84521011

84521019

84521090

84522100

84522900

84523010

84523090

84524000

84529000

Electro-mechanical domestic appliances,

85091010

85091090

85092000

85093000

85094000

85098000

85099010

85099090

Electric instantaneous or storage water heaters

85162991

85163110

85163190

85164010

85164090

85165000

85166070

85167100

85167200

85167980

Turntables (record-decks), record-players, cassette-players

85191000

85192100

85192900

85193100

85193900

85194000

85199331

85199339

85199381

85199389

85199912

85199918

85199990

Magnetic tape recorders and other sound recording

85201000

85203219

85203250

85203291

85203299

85203319

85203390

85203910

85203990

85209090

CN code 96

Video recording or reproducing apparatus,

85211030

85211080

85219000

Parts and accessories

85221000

85229030

85229091

85229098

Prepared unrecorded media for sound recording

85233000

Records, tapes and other recorded media

85241000

85243200

85243900

85245100

85245200

85245300

85246000

85249900

Reception apparatus for radio-telephony,

85271210

85271290

85271310

85271391

85271399

85272120

85272152

85272159

85272170

85272192

85272198

85272900

85273111

85273119

85273191

85273193

85273198

85273290

85273910

85273991

85273999

85279091

85279099

Reception apparatus for television,

85281214

85281216

85281218

85281222

85281228

85281252

85281254

85281256

85281258

85281262

85281266

85281272

85281276

CN code 96

85281281

85281289

85281291

85281298

85281300

85282114

85282116

85282118

85282190

85282200

85283010

85283090

Parts suitable for use solely or principally with

85291020

85291031

85291039

85291040

85291050

85291070

85291090

85299051

85299059

85299070

85299081

85299089

Electric sound or visual signalling apparatus

85311020

85311030

85311080

85318090

85319090

Thermionic, cold cathode or photocathode valves

85401111

85401113

85401115

85401119

85401191

85401199

85401200

85402010

85402030

85402090

85404000

85405000

85406000

85407100

85407200

85407900

85408100

85408911

85408919

85408990

85409100

85409900

Electronic integrated circuits and microassemblies

85421425

Insulated (including enamelled or anodised) wire,

85441110

85441190

85441910

CN code 96

85441990

85442000

85443090

85444110

85444190

85444920

85444980

85445100

85445910

85445920

85445980

85446010

85446090

85447000

Motor vehicles for the transport of ten or more persons

87021091

87021099

87029031

87029039

87029090

Motor vehicles for the transport of goods :

87041011

87041019

87041090

87042110

87042191

87042199

87042210

87042310

87043110

87043191

87043199

87043210

87049000

Special purpose motor vehicles,

87051000

87052000

87053000

87054000

87059010

87059030

87059090

Works trucks, self-propelled, not fitted with lift

87091110

87091190

87091910

87091990

87099010

87099090

Motor-cycles (including mopeds)

87111000

87112010

87112091

87112093

87112098

87113010

87113090

87114000

87115000

87119000

CN code 96

Bicycles and other cycles

87120010

87120030

87120080

Photocopying apparatus

90091100

90091200

90092100

90092210

90092290

90093000

90099010

90099090

Liquid crystal devices

90131000

90132000

90138011

90138019

90138030

90138090

90139010

90139090

Wrist-watches, pocket-watches and other watches,

91011100

91011200

91011900

91012100

91012900

91019100

91019900

Wrist-watches, pocket-watches and other watches,

91021100

91021200

91021900

91022100

91022900

91029100

91029900

Clocks with watch movements,

91031000

91039000

Other clocks :

91051100

91051900

91052100

91052900

91059100

91059910

91059990

Pianos, including automatic pianos; harpsichords

92011010

92011090

92012000

92019000

CN code 96

Revolvers and pistols,

93020010

93020090

Other firearms and similar devices

93031000

93032030

93032080

93033000

93039000

Other arms (for example, spring, air or gas guns

93040000

Parts and accessories of articles of heading Nos 9...

93051000

93052100

93052910

93052930

93052980

93059090

Bombs, grenades, torpedoes, mines, missiles

93061000

93062100

93062940

93062970

93063010

93063091

93063093

93063098

93069090

Seats (other than those of heading No 9402),

94012000

94019010

94019030

94019080

Other furniture and parts thereof :

94034010

94034090

94039010

94039030

94039090

Mattress supports; articles of bedding

94041000

94042110

94042190

94042910

94042990

94043010

94043090

94049010

94049090

Lamps and lighting fittings including searchlights

94051021

94051029

94051030

94051050

94051091

CN code 96

94051099

94052011

94052019

94052030

94052050

94052091

94052099

94053000

94054010

94054031

94054035

94054039

94054091

94054095

94054099

94055000

94056091

94056099

94059111

94059119

94059190

94059290

94059990

Prefabricated buildings :

94060010

94060031

94060039

94060090

Other toys; reduced-size ("scale") models

95031010

95031090

95032010

95032090

95033010

95033030

95033090

95034100

95034910

95034930

95034990

95035000

95036010

95036090

95037000

95038010

95038090

95039010

95039032

95039034

95039035

95039037

95039051

95039055

95039099

Brooms, brushes

96031000

96032100

96032910

96032930

96032990

96033010

96033090

CN code 96

96034010

96034090

96035000

96039010

96039091

96039099

Agricultural Products

CN code 96

Live horses, asses, mules and hinnies :

01011990

01012090

Other live animals :

01060020

Edible offal of bovine animals, swine, sheep, goat

02063021

02064191

02068091

02069091

Meat and edible offal,

02071391

02071491

02072691

02072791

02073591

02073689

Other meat and edible meat offal, fresh, chilled

02081011

02081019

02089010

02089050

02089060

02089080

Meat and edible meat offal, salted, in brine, drie

02109010

02109060

02109079

02109080

Birds' eggs, in shell, fresh, preserved or cooked

04070090

Edible products of animal origin, not elsewhere sp

04100000

Bulbs, tubers, tuberous roots, corms, crowns

06012030

06012090

Other live plants (including their roots), cutting

06022090

06023000

06024010

06024090

06029010

06029030

06029041

06029045

06029049

06029051

06029059

06029070

06029091

06029099

CN code 96

Foliage, branches and other parts of plants,

06049121

06049129

06049149

06049990

Potatoes, fresh or chilled :

07019059

07019090

Onions, shallots, garlic, leeks

07032000

Other vegetables, fresh or chilled :

07091040

07095130

07095200

07096099

07099031

07099071

07099073

Vegetables (uncooked or cooked by steaming or boiling

07108059

Vegetables provisionally preserved

07119010

Dried vegetables, whole, cut, sliced, broken

07129005

Other nuts, fresh or dried, whether or not shelled

08021290

Dates, figs, pineapples, avocados, guavas, mangoes

08041000

Citrus fruit, fresh or dried :

08054095

Grapes, fresh or dried :

08062091

08062092

08062098

Apricots, cherries, peaches (including nectarines)

08094010 (12)

08094090

Other fruit, fresh :

08104050

Fruit and nuts, uncooked or cooked by steaming

08112019

08112051

08112090

08119031

08119050

08119085

CN code 96

Fruit and nuts, provisionally preserved

08129040

Fruit, dried,

08131000

08133000

08134030

08134095

Coffee, whether or not roasted or decaffeinated;

09011200

09012100

09012200

09019090

Cloves (whole fruit, cloves and stems).

09070000

Ginger, saffron, turmeric (curcuma), thyme, bay leaf

09104013

09104019

09104090

09109190

09109999

Seeds, fruit and spores, of a kind used for sowing

12091100

12091900

Locust beans, seaweeds and other algae, sugar beet

12129200

Pig fat (including lard) and poultry fat,

15010090

Lard stearin, lard oil, oleostearin, oleo-oil

15030090

Ground-nut oil and its fractions, whether or not refined

15081090

15089090

Palm oil and its fractions, whether or not refined

15119011

15119019

15119099

Coconut (copra), palm kernel or babassu oil

15131191

15131199

15131911

15131919

15131991

15131999

15132130

15132190

15132911

15132919

15132950

15132991

15132999

CN code 96

Other fixed vegetable fats and oils

15151990

15152190

15152990

15155019

15155099

15159029

15159039

15159051

15159059

15159091

15159099

Animal or vegetable fats and oils

15161010

15161090

15162091

15162096

15162098

Margarine; edible mixtures

15171090

15179091

15179099

Animal or vegetable fats and oils

15180010

15180091

15180099

Sausages and similar products, of meat, meat offal

16010010

Extracts and juices of meat, fish or crustaceans,

16030010

Molasses

17031000

17039000

Cocoa paste, whether or not defatted :

18031000

18032000

Cocoa butter, fat and oil.

18040000

Cocoa powder, not containing added sugar or other

18050000

Vegetables, fruit, nuts and other edible parts

20019060

20019070

20019075

20019085

20019091

Other vegetables prepared or preserved otherwise

20049030

CN code 96

Other vegetables prepared or preserved otherwise

20057010

20057090

20059010

20059030

20059050

20059060

20059070

20059075

20059080

Vegetables, fruit, nuts, fruit-peel and other parts

20060091

Fruit, nuts and other edible parts of plants,

20081110

20081192

20081196

20081911

20081913

20081951

20081993

20083071

20089100

20089212

20089214

20089232

20089234

20089236

20089238

20089911

20089919

20089938

20089940

20089947

Fruit juices (including grape must)

20098036

20098038

20098088

20098089

20098095

20098096

Yeasts (active or inactive);

21023000

Sauces and preparations therefor;

21031000

21033090

21039090

Soups and broths and preparations therefor;

21041010

21041090

21042000

Food preparations not elsewhere specified

21069092

Waters, including mineral waters and aerated water

22021000

22029010

CN code 96

Other fermented beverages (for example, cider)

22060031

22060039

22060051

22060059

22060081

22060089

Undenatured ethyl alcohol of an alcoholic strength

22085011

22085019

22085091

22085099

22086011

22086091

22086099

22087010

22087090

22089011

22089019

22089057

22089069

22089074

22089078

Preparations of a kind used in animal feeding :

23091090

23099091

23099093

23099098

Unmanufactured tobacco; tobacco refuse :

24011030

24011050

24011070

24011080

24011090

24012030

24012049

24012050

24012080

24012090

24013000

Cigars, cheroots, cigarillos and cigarettes,

24021000

24022010

24022090

24029000

Other manufactured tobacco and manufactured tobacco

24031010

24031090

24039100

24039910

24039990

Casein, caseinates and other casein derivatives;

35011090

35019010

35019090

CN code 96

Albumins

35029070

Industrial monocarboxylic fatty acids; acid oils

38231200

38237000

ANNEX XII to Protocol 1 Products for which the cumulation provisions with South Africa referred to in Article 6(3) apply after 6 years from the provisional application of the Trade, Development and Co-operation Agreement between the European Community and the Republic of South Africa

Industrial Products (1)

CN code 96

Woven fabrics of cotton, containing 85 % or more

52081110

52081190

52081211

52081213

52081215

52081219

52081291

52081293

52081295

52081299

52081300

52081900

52082110

52082190

52082211

52082213

52082215

52082219

52082291

52082293

52082295

52082299

52082300

52082900

52083100

52083211

52083213

52083215

52083219

52083291

52083293

52083295

52083299

52083300

52083900

52084100

52084200

52084300

52084900

52085100

52085210

52085290

52085300

52085900 \

CN code 96

Woven fabrics of cotton, containing 85 % or more

52091100

52091200

52091900

52092100

52092200

52092900

52093100

52093200

52093900

52094100

52094200

52094300

52094910

52094990

52095100

52095200

52095900

Woven fabrics of cotton, containing less than 85 %

52101110

52101190

52101200

52101900

52102110

52102190

52102200

52102900

52103110

52103190

52103200

52103900

52104100

52104200

52104900

52105100

52105200

52105900

Woven fabrics of cotton, containing less than 85 %

52111100

52111200

52111900

52112100

52112200

52112900

52113100

52113200

52113900

52114100

52114200

52114300

52114910

52114990

52115100

52115200

52115900

Other woven fabrics of cotton :

52121110

52121190

52121210

52121290

CN code 96

52121310

52121390

52121410

52121490

52121510

52121590

52122110

52122190

52122210

52122290

52122310

52122390

52122410

52122490

52122510

52122590

Woven fabrics of synthetic staple fibres

55121100

55121910

55121990

55122100

55122910

55122990

55129100

55129910

55129990

Woven fabrics of synthetic staple fibres

55131110

55131130

55131190

55131200

55131300

55131900

55132110

55132130

55132190

55132200

55132300

55132900

55133100

55133200

55133300

55133900

55134100

55134200

55134300

55134900

Woven fabrics of synthetic staple fibres

55141100

55141200

55141300

55141900

55142100

55142200

55142300

55142900

55143100

55143200

55143300

55143900

55144100

CN code 96

55144200

55144300

55144900

Other woven fabrics of synthetic staple fibres

55151110

55151130

55151190

55151210

55151230

55151290

55151311

55151319

55151391

55151399

55151910

55151930

55151990

55152110

55152130

55152190

55152211

55152219

55152291

55152299

55152910

55152930

55152990

55159110

55159130

55159190

55159211

55159219

55159291

55159299

55159910

55159930

55159990

Woven fabrics of artificial staple fibres

55161100

55161200

55161300

55161400

55162100

55162200

55162310

55162390

55162400

55163100

55163200

55163300

55163400

55164100

55164200

55164300

55164400

55169100

55169200

55169300

55169400

CN code 96

Twine, cordage, ropes and cables

56071000

56072100

56072910

56072990

56073000

56074100

56074911

56074919

56074990

56075011

56075019

56075030

56075090

56079000

Knotted netting of twine, cordage or rope

56081111

56081119

56081191

56081199

56081911

56081919

56081931

56081939

56081991

56081999

56089000

Carpets and other textile floor coverings, woven

57021000

57022000

57023110

57023130

57023190

57023210

57023290

57023910

57023990

57024110

57024190

57024210

57024290

57024910

57024990

57025100

57025200

57025900

57029100

57029200

57029900

Carpets and other textile floor coverings, tufted

57031010

57031090

570320111

57032019

57032091

57032099

57033011

CN code 96

57033019

57033051

57033059

57033091

57033099

57039010

57039090

Carpets and other textile floor coverings, of felt

57041000

57049000

Other carpets and other textile floor coverings,

57050010

57050031

57050039

57050090

Other knitted or crocheted fabrics

60021010

60021090

60022010

60022031

60022039

60022050

60022070

60022090

60023010

60023090

60024100

60024210

60024230

60024250

60024290

60024311

60024319

60024331

60024333

60024335

60024339

60024350

60024391

60024393

60024395

60024399

60024900

60029100

60029210

60029230

60029250

60029290

60029310

60029331

60029333

60029335

60029339

60029391

60029399

60029900

CN code 96

Men's or boys' suits, ensembles, jackets, blazers

61031100

61031200

61031900

61032100

61032200

61032300

61032900

61033100

61033200

61033300

61033900

Women's or girls' suits, ensembles, jackets, blazers

61041100

61041200

61041300

61041900

61042100

61042200

61042300

61042900

61043100

61043200

61043300

61043900

61044100

61044200

61044300

61044400

61044900

Men's or boys' shirts, knitted or crocheted

61051000

61052010

61052090

61059010

61059090

Women's or girls' blouses, shirts and shirt-blouses

61061000

61062000

61069010

61069030

61069050

61069090

T-shirts, singlets and other vests, knitted or crocheted

61099090

Jerseys, pullovers, cardigans, waistcoats and similar

61101010

61101031

61101035

611010381

61101091

61101095

61101098

CN code 96

61102010

61102091

61102099

61103010

61103091

61103099

61109010

61109090

Babies' garments and clothing accessories, knitted

61111010

61111090

61112010

61112090

61113010

61113090

61119000

Men's or boys' suits, ensembles, jackets, blazers

62031100

62031200

62031910

62031930

62031990

62032100

62032210

62032280

62032310

62032380

62032911

62032918

62032990

62033100

62033210

62033290

62033310

62033390

62033911

62033919

62033990

Women's or girls' suits, ensembles, jackets, blazers

62041100

62041200

62041300

62041910

62041990

62042100

62042210

62042280

62042310

62042380

62042911

62042918

62042990

62043100

62043210

62043290

62043310

62043390

62043911

CN code 96

62043919

62043990

62044100

62044200

62044300

62044400

62044910

62044990

Women's or girls' blouses, shirts and shirt-blouses

62061000

62062000

62063000

62064000

62069010

62069090

Babies' garments and clothing accessories

62091000

62092000

62093000

62099000

Garments, made up of fabrics of heading No 5602, 5

62101010

62101091

62101099

62102000

62103000

62104000

62105000

Track suits, ski suits and swimwear; other garments

62111100

62111200

62112000

62113100

62113210

62113231

62113241

62113242

62113290

62113310

62113331

62113341

62113342

62113390

62113900

62114100

62114210

62114231

62114241

62114242

62114290

62114310

62114331

62114341

62114342

62114390

62114900

CN code 96

Bed linen, table linen, toilet linen and kitchen linen

63021010

63021090

63022100

63022210

63022290

63022910

63022990

63023110

63023190

63023210

63023290

63023910

63023930

63023990

63024000

63025110

63025190

63025200

63025310

63025390

63025900

63026000

63029110

63029190

63029200

63029310

63029390

63029900

Curtains (including drapes) and interior blinds

63031100

63031200

63031900

63039100

63039210

63039290

63039910

63039990

Other furnishing articles

63041100

63041910

63041930

63041990

63049100

63049200

63049300

63049900

Industrial Products (2)

CN code 96

Hydrogen, rare gases and other non-metals :

28046900

Colloidal precious metals; inorganic or organic

28431090

28433000

28439090

Oxygen-function amino-compounds

29224100

Pig iron and spiegeleisen in pigs, blocks or other

72011011

72011019

72011030

72012000

72015090

Ferro-alloys

72021120

72021180

72021900

72022110

72022190

72022900

72023000

72024110

72024191

72024199

72024910

72024950

72024990

Ferrous products obtained by direct reduction

72039000

Ferrous waste and scrap; remelting scrap ingots

72045090

Iron and non-alloy steel in ingots or other

72061000

72069000

Semi-finished products of iron or non-alloy steel

72071111

72071114

72071116

72071210

72071911

72071914

72071916

72071931

72072011

72072015

72072017

72072032

72072051

72072055

72072057

72072071

CN code 96

Flat-rolled products of iron or non-alloy steel,

72081000

72082500

72082600

72082700

72083600

72083710

72083790

72083810

72083890

72083910

72083990

72084010

72084090

72085110

72085130

72085150

72085191

72085199

72085210

72085291

72085299

72085310

72085390

72085410

72085490

72089010

Flat-rolled products of iron or non-alloy steel,

72091500

72091610

72091690

72091710

72091790

72091810

72091891

72091899

72092500

72092610

72092690

72092710

72092790

72092810

72092890

72099010

Flat-rolled products of iron or non-alloy steel,

72101110

72101211

72101219

72102010

72103010

72104110

72104910

72105010

72106110

72106910

72107031

72107039

72109031

72109033

72109038

CN code 96

Flat-rolled products of iron or non-alloy steel,

72111300

72111410

72111490

72111920

72111990

72112310

72112351

72112920

72119011

Flat-rolled products of iron or non-alloy steel,

72121010

72121091

72122011

72123011

72124010

72124091

72125031

72125051

72126011

72126091

Bars and rods, hot-rolled,

72131000

72132000

72139110

72139120

72139141

72139149

72139170

72139190

72139910

72139990

Other bars and rods of iron or non-alloy steel,

72142000

72143000

72149110

72149190

72149910

72149931

72149939

72149950

72149961

72149969

72149980

72149990

Other bars and rods of iron or non-alloy steel :

72159010

Angles, shapes and sections of iron or non-alloy steel :

72161000

72162100

72162200

72163111

72163119

72163191

72163199

72163211

72163219

72163291

CN code 96

72163299

72163310

72163390

72164010

72164090

72165010

72165091

72165099

72169910

Stainless steel in ingots or other primary forms;

72181000

72189111

72189119

72189911

72189920

Flat-rolled products of stainless steel,

72191100

72191210

72191290

72191310

72191390

72191410

72191490

72192110

72192190

72192210

72192290

72192300

72192400

72193100

72193210

72193290

72193310

72193390

72193410

72193490

72193510

72193590

72199010

Flat-rolled products of stainless steel,

72201100

72201200

72202010

72209011

72209031

Bars and rods, hot-rolled,

72210010

72210090

Other bars and rods of stainless steel;

72221111

72221119

72221121

72221129

72221191

72221199

72221910

72221990

72223010

72224010

CN code 96

72224030

Other alloy steel in ingots or other primary forms

72241000

72249001

72249005

72249008

72249015

72249031

72249039

Flat-rolled products of other alloy steel,

72251100

72251910

72251990

72252020

72253000

72254020

72254050

72254080

72255000

72259110

72259210

72259910

Flat-rolled products of other alloy steel,

72261110

72261910

72261930

72262020

72269110

72269190

72269210

72269320

72269420

72269920

Bars and rods, hot-rolled,

72271000

72272000

72279010

72279050

72279095

Other bars and rods of other alloy steel;

72281010

72281030

72282011

72282019

72282030

72283020

72283041

72283049

72283061

72283069

72283070

72283089

72286010

72287010

72287031

72288010

72288090

CN code 96

Sheet piling of iron or steel,

73011000

Railway or tramway track construction material

73021031

73021039

73021090

73022000

73024010

73029010

Tubes, pipes and hollow profiles, of cast iron :

73030010

73030090

Tube or pipe fittings (for example couplings)

73071110

73071190

73071910

73071990

73072100

73072210

73072290

73072310

73072390

73072910

73072930

73072990

73079100

73079210

73079290

73079311

73079319

73079391

73079399

73079910

73079930

73079990

Reservoirs, tanks, vats and similar containers

73090010

73090030

73090051

73090059

73090090

Tanks, casks, drums, cans, boxes and similar containers

73101000

73102110

73102191

73102199

73102910

73102990

Containers for compressed or liquefied gas,

73110010

73110091

73110099

Stranded wire, ropes, cables, plaited bands,

73121030

73121051

73121059

CN code 96

73121071

73121075

73121079

73121082

73121084

73121086

73121088

73121099

73129090

Barbed wire of iron or steel;

73130000

Chain and parts thereof, of iron or steel :

73151110

73151190

73151200

73151900

73152000

73158100

73158210

73158290

73158900

73159000

Screws, bolts, nuts, coach screws, screw hooks,

73181100

73181210

73181290

73181300

73181410

73181491

73181499

73181510

73181520

73181530

73181541

73181549

73181551

73181559

73181561

73181569

73181570

73181581

73181589

73181590

73181610

73181630

73181650

73181691

73181699

73181900

73182100

73182200

73182300

73182400

73182900

Sewing needles, knitting needles, bodkins, crochets

73191000

73192000

73193000

73199000

CN code 96

Springs and leaves for springs, of iron or steel :

73201011

73201019

73201090

73202020

73202081

73202085

73202089

73209010

73209030

73209090

Stoves, ranges, grates, cookers

73211110

73211190

73211200

73211300

73218110

73218190

73218210

73218290

73218300

73219000

Radiators for central heating,

73221100

73221900

73229090

Table, kitchen or other household articles

73231000

73239100

73239200

73239310

73239390

73239410

73239490

73239910

73239991

73239999

Sanitary ware and parts thereof, of iron or steel

73241090

73242100

73242900

73249090

Other cast articles of iron or steel :

73251020

73251050

73251091

73251099

73259100

73259910

73259991

73259999

Other articles of iron or steel :

73261100

73261910

73261990

73262030

73262050

CN code 96

73262090

73269010

73269030

73269040

73269050

73269060

73269070

73269080

73269091

73269093

73269095

73269097

Unwrought zinc :

79011100

79011210

79011230

79011290

79012000

Zinc dust, powders and flakes :

79031000

79039000

Motor vehicles for the transport of ten or more persons

87021011

87021019

87029011

87029019

Motor vehicles for the transport of goods :

87042131

87042139

87042291

87042299

87042391

87042399

87043131

87043139

87043291

87043299

ANNEX XIII to protocol 1 Products to which Article 6(3) shall not be applicable

Industrial Products (1)

CN code 96

Motor cars and other motor vehicles

87031010

87031090

87032110

87032190

87032211

87032219

87032290

87032311

87032319

87032390

87032410

87032490

87033110

87033190

87033211

87033219

87033290

87033311

87033319

87033390

87039010

87039090

Chassis fitted with engines,

87060011

87060019

87060091

87060099

Bodies (including cabs), for the motor vehicles

87071010

87071090

87079010

87079090

Parts and accessories of the motor vehicles

87081010

87081090

87082110

87082190

87082910

87082990

87083110

87083191

87083199

87083910

87083990

87084010

87084090

87085010

87085090

87086010

87086091

87086099

CN code 96

87087010

87087050

87087091

87087099

87088010

87088090

87089110

87089190

87089210

87089290

87089310

87089390

87089410

87089490

87089910

87089930

87089950

87089992

87089998 Industrial Products (2)

CN code 96

Unwrought aluminium :

76011000

76012010

76012091

76012099

Aluminium powders and flakes :

76031000

76032000

Agricultural Products (1)

CN code 96

Live horses, asses, mules and hinnies :

01012010

Milk and cream, not concentrated

04011010

04011090

04012011

04012019

04012091

04012099

04013011

04013019

04013031

04013039

04013091

04013099

Buttermilk, curdled milk and cream, yogurt, kephir

04031011

04031013

04031019

04031031

04031033

04031039

Potatoes, fresh or chilled :

07019051

Leguminous vegetables, shelled or unshelled, fresh or chilled

07081020

07081095

Other vegetables, fresh or chilled :

07095190

07096010

Vegetables (uncooked or cooked by steaming or boiled)

07108095

Vegetables provisionally preserved

07111000

07113000

07119060

07119070

Dates, figs, pineapples, avocados, guavas, mangoes

08042090

08043000

08044020

08044090

08044095

Grapes, fresh or dried :

08061029 (3) (12)

08062011

08062012

08062018

CNcode 96

Melons (including watermelons) and papaws (papayas)

08071100

08071900

Apricots, cherries, peaches (including nectarines)

08093011 (5) (12)

08093051 (6) (12)

Other fruit, fresh :

08109040

08109085

Fruit and nuts, provisionally preserved

08121000

08122000

08129050

08129060

08129070

08129095

Fruit, dried,

08134010

08135015

08135019

08135039

08135091

08135099

Pepper of the genus Piper; dried or crushed

09042010

Soya-bean oil and its fractions,

15071010

15071090

15079010

15079090

Sunflower-seed, safflower or cotton-seed oil

15121110

15121191

15121199

15121910

15121991

15121999

15122110

15122190

15122910

15122990

Rape, colza or mustard oil and fractions thereof,

15141010

15141090

15149010

15149090

Fruit, nuts and other edible parts of plants,

20081959

Fruit juices (including grape must)

20092099

20094099

20098099

CN code 96

Unmanufactured tobacco; tobacco refuse :

24011010

24011020

24011041

24011049

24011060

24012010

24012020

24012041

24012060

24012070 Agricultural Products (2)

CN code 96

Cut flowers and flower buds

06031055

06031061

06031069 (11)

Onions, shallots, garlic, leeks

07031011

07031019

07031090

07039000

Cabbages, cauliflowers, kohlrabi, kale and similar

07041005

07041010

07041080

07042000

07049010

07049090

Lettuce (Lactuca sativa) and chicory

07051105

07051110

07051180

07051900

07052100

07052900

Carrots, turnips, salad beetroot, salsify, celeriac

07061000

07069005

07069011

07069017

07069030

07069090

Leguminous vegetables, shelled or unshelled, fresh or chilled

07081090

07082020

07082090

07082095

07089000

Other vegetables, fresh or chilled :

07091030 (12)

07093000

07094000

07095110

07095150

07097000

07099010

07099020

07099040

07099050

07099090

Vegetables (uncooked or cooked by steaming or boiled)

07101000

07102100

07102200

07102900

CN code 96

07103000

07108010

07108051

07108061

07108069

07108070

07108080

07108085

07109000

Vegetables provisionally preserved

07112010

07114000

07119040

07119090

Dried vegetables, whole, cut, sliced, broken

07122000

07123000

07129030

07129050

07129090

Manioc, arrowroot, salep, Jerusalem artichokes,

07149011

07149019

Other nuts, fresh or dried, whether or not shelled

08021190

08022100

08022200

08024000

Bananas, including plantains, fresh or dried :

08030011

08030090

Dates, figs, pineapples, avocados, guavas, mangoes

08042010

Citrus fruit, fresh or dried :

08052021 (1) (12)

08052023 (1) (12)

08052025 (1) (12)

08052027 (1) (12)

08052029 (1) (12)

08053090

08059000

Grapes, fresh or dried :

08061095

08061097

Apples, pears and quinces, fresh :

08081010 (12)

08082010 (12)

08082090

Apricots, cherries, peaches (including nectarines)

08091010 (12)

08091050 (12)

08092019 (12)

08092029 (12)

08093011 (7) (12)

CN code 96

08093019 (12)

08093051 (8) (12)

08093059 (12)

08094040 (12)

Other fruit, fresh :

08101005

08102090

08103010

08103030

08103090

08104090

08105000

Fruit and nuts, uncooked or cooked by steaming

08112011

08112031

08112039

08112059

08119011

08119019

08119039

08119075

08119080

08119095

Fruit and nuts, provisionally preserved

08129010

08129020

Fruit, dried,

08132000

Wheat and meslin :

10019010

Buckwheat, millet and canary seed; other cereals :

10081000

10082000

10089090

Flour, meal, powder, flakes, granules and pellets

11051000

11052000

Flour, meal and powder of the dried leguminous vegetables

11061000

11063010

11063090

Fats and oils and their fractions, of fish

15043011

Other prepared or preserved meat, meat offal

16022011

16022019

16023111

16023119

16023130

16023190

16023219

16023230

16023290

CN code 96

16023929

16023940

16023980

16024190

16024290

16029031

16029072

16029076

Vegetables, fruit, nuts and other edible parts

20011000

20012000

20019050

20019065

20019096

Mushrooms and truffles, prepared or preserved

20031020

20031030

20031080

20032000

Other vegetables prepared or preserved otherwise

20041010

20041099

20049050

20049091

20049098

Other vegetables prepared or preserved otherwise

20051000

20052020

20052080

20054000

20055100

20055900

Vegetables, fruit, nuts, fruit-peel

20060031

20060035

20060038

20060099

Jams, fruit jellies, marmalades, fruit or nut puree

20071091

20079993

Fruit, nuts and other edible parts of plants,

20081194

20081198

20081919

20081995

20081999

20082051

20082059

20082071

20082079

20082091

20082099

20083011

20083039

20083051

20083059

20084011

CNcode 96

20084021

20084029

20084039

20086011

20086031

20086039

20086059

20086069

20086079

20086099

20087011

20087031

20087039

20087059

20088011

20088031

20088039

20088050

20088070

20088091

20088099

20089923

20089925

20089926

20089928

20089936

20089945

20089946

20089949

20089953

20089955

20089961

20089962

20089968

20089972

20089974

20089979

20089999

Fruit juices (including grape must)

20091119

20091191

20091919

20091991

20091999

20092019

20092091

20093019

20093031

20093039

20093051

20093055

20093091

20093095

20093099

20094019

20094091

20098019

20098050

20098061

20098063

20098073

20098079

20098083

CNcode 96

20098084

20098086

20098097

20099019

20099029

20099039

20099041

20099051

20099059

20099073

20099079

20099092

20099094

20099095

20099096

20099097

20099098

Other fermented beverages (for example, cider)

22060010

Wine lees; argol :

23070019

Vegetable materials and vegetable waste,

23089019

Agricultural Products (3)

CN code 96

Live swine :

01039110

01039211

01039219

Live sheep and goats :

01041030

01041080

01042090

Live poultry, that is to say, fowls of the species

01051111

01051119

01051191

01051199

01051200

01051920

01051990

01059200

01059300

01059910

01059920

01059930

01059950

Meat of swine, fresh, chilled or frozen :

02031110

02031211

02031219

02031911

02031913

02031915

02031955

02031959

02032110

02032211

02032219

02032911

02032913

02032915

02032955

02032959

Meat of sheep or goats, fresh, chilled or frozen :

02041000

02042100

02042210

02042230

02042250

02042290

02042300

02043000

02044100

02044210

02044230

02044250

02044290

02044310

02044390

02045011

CNcode 96

02045013

02045015

02045019

02045031

02045039

02045051

02045053

02045055

02045059

02045071

02045079

Meat and edible offal,

02071110

02071130

02071190

02071210

02071290

02071310

02071320

02071330

02071340

02071350

02071360

02071370

02071399

02071410

02071420

02071430

02071440

02071450

02071460

02071470

02071499

02072410

02072490

02072510

02072590

02072610

02072620

02072630

02072640

02072650

02072660

02072670

02072680

02072699

02072710

02072720

02072730

02072740

02072750

02072760

02072770

02072780

02072799

02073211

02073215

02073219

02073251

02073259

02073290

02073311

02073319

CNcode 96

02073351

02073359

02073390

02073511

02073515

02073521

02073523

02073525

02073531

02073541

02073551

02073553

02073561

02073563

02073571

02073579

02073599

02073611

02073615

02073621

02073623

02073625

02073631

02073641

02073651

02073653

02073661

02073663

02073671

02073679

02073690

Pig fat, free of lean meat, and poultry fat,

02090011

02090019

02090030

02090090

Meat and edible meat offal, salted, in brine,

02101111

02101119

02101131

02101139

02101190

02101211

02101219

02101290

02101910

02101920

02101930

02101940

02101951

02101959

02101960

02101970

02101981

02101989

02101990

02109011

02109019

02109021

02109029

02109031

02109039

CN code 96

Milk and cream, concentrated

04029111

04029119

04029131

04029139

04029151

04029159

04029191

04029199

04029911

04029919

04029931

04029939

04029991

04029999

Buttermilk, curdled milk and cream, yogurt, kephir

04039051

04039053

04039059

04039061

04039063

04039069

Whey, whether or not concentrated

04041048

04041052

04041054

04041056

04041058

04041062

04041072

04041074

04041076

04041078

04041082

04041084

Cheese and curd :

04061020 (11)

04061080 (11)

04062090 (11)

04063010 (11)

04063031 (11)

04063039 (11)

04063090 (11)

04064090 (11)

04069001 (11)

04069021 (11)

04069050 (11)

04069069 (11)

04069078 (11)

04069086 (11)

04069087 (11)

04069088 (11)

04069093 (11)

04069099 (11)

Birds' eggs, in shell, fresh, preserved or cooked

04070011

04070019

04070030

CN code 96

Birds' eggs, not in shell, and egg yolks, fresh,

04081180

04081981

04081989

04089180

04089980

Natural honey.

04090000

Tomatoes, fresh or chilled :

07020015 (12)

07020020 (12)

07020025 (12)

07020030 (12)

07020035 (12)

07020040 (12)

07020045 (12)

07020050 (12)

Cucumbers and gherkins, fresh or chilled :

07070010 (12)

07070015 (12)

07070020 (12)

07070025 (12)

07070030 (12)

07070035 (12)

07070040 (12)

07070090

Other vegetables, fresh or chilled :

07091010 (12)

07091020 (12)

07092000

07099039

07099075 (12)

07099077 (12)

07099079 (12)

Vegetables provisionally preserved

07112090

Dried vegetables, whole, cut, sliced, broken

07129019

Manioc, arrowroot, salep, Jerusalem artichokes,

07141010

07141091

07141099

07142090

Citrus fruit, fresh or dried :

08051037 (2) (12)

08051038 (2) (12)

08051039 (2) (12)

08051042 (2) (12)

08051046 (2) (12)

08051082

08051084

CN code 96

08051086

08052011 (12)

08052013 (12)

08052015 (12)

08052017 (12)

08052019 (12)

08052021 (10) (12)

08052023 (10) (12)

08052025 (10) (12)

08052027 (10) (12)

08052029 (10) (12)

08052031 (12)

08052033 (12)

08052035 (12)

08052037 (12)

08052039 (12)

Grapes, fresh or dried :

08061021 (12)

08061029 (4) (12)

08061030 (12)

08061050 (12)

08061061 (12)

08061069 (12)

08061093

Apricots, cherries, peaches (including nectarines)

08091020 (12)

08091030 (12)

08091040 (12)

08092011 (12)

08092021 (12)

08092031 (12)

08092039 (12)

08092041 (12)

08092049 (12)

08092051 (12)

08092059 (12)

08092061 (12)

08092069 (12)

08092071 (12)

08092079 (12)

08093021 (12)

08093029 (12)

08093031 (12)

08093039 (12)

08093041 (12)

08093049 (12)

08094020 (12)

08094030 (12)

Other fruit, fresh :

08101010

08101080

08102010

Fruit and nuts, uncooked or cooked by steaming

08111011

08111019

Wheat and meslin :

10011000

10019091

10019099

CN code 96

Rye.

10020000

Barley :

10030010

10030090

Oats.

10040000

Buckwheat, millet and canary seed; other cereals :

10089010

Wheat or meslin flour :

11010011

11010015

11010090

Cereal flours other than of wheat or meslin :

11021000

11029010

11029030

11029090

Cereal groats, meal and pellets :

11031110

11031190

11031200

11031910

11031930

11031990

11032100

11032910

11032920

11032930

11032990

Cereal grains otherwise worked

11041110

11041190

11041210

11041290

11041910

11041930

11041999

11042110

11042130

11042150

11042190

11042199

11042220

11042230

11042250

11042290

11042292

11042299

11042911

11042915

11042919

11042931

CN code 96

11042935

11042939

11042951

11042955

11042959

11042981

11042985

11042989

11043010

Flour, meal and powder of the dried leguminous vegetables

11062010

11062090

Malt, whether or not roasted :

11071011

11071019

11071091

11071099

11072000

Locust beans, seaweeds and other algae, sugar beet

12129120

12129180

Pig fat (including lard) and poultry fat,

15010019

Olive oil and its fractions, whether or not refined

15091010

15091090

15099000

Other oils and their fractions,

15100010

15100090

Degras;

15220031

15220039

Sausages and similar products, of meat, meat offal

16010091

16010099

Other prepared or preserved meat, meat offal

16021000

16022090

16023211

16023921

16024110

16024210

16024911

16024913

16024915

16024919

16024930

16024950

16024990

16025031

CN code 96

16025039

16025080

16029010

16029041

16029051

16029069

16029074

16029078

16029098

Other sugars, including chemically pure lactose,

17021100

17021900

Pasta, whether or not cooked or stuffed

19022030

Jams, fruit jellies, marmalades, fruit or nut puree

20071099

20079190

20079991

20079998

Fruit, nuts and other edible parts of plants,

20082011

20082031

20083019

20083031

20083079

20083091

20083099

20084019

20084031

20085011

20085019

20085031

20085039

20085051

20085059

20086019

20086051

20086061

20086071

20086091

20087019

20087051

20088019

20089216

20089218

20089921

20089932

20089933

20089934

20089937

20089943

Fruit juices (including grape must)

20091111

20091911

20092011

20093011

20093059

20094011

20095010

CN code 96

20095090

20098011

20098032

20098033

20098035

20099011

20099021

20099031

Food preparations not elsewhere specified

21069051

Wine of fresh grapes, including fortified wines;

22041019 (11)

22041099 (11)

22042110

22042181

22042182

22042198

22042199

22042910

22042958

22042975

22042998

22042999

22043010

22043092 (12)

22043094 (12)

22043096 (12)

22043098 (12)

Undenatured ethyl alcohol

22082040

Bran, sharps and other residues,

23023010

23023090

23024010

23024090

Oil-cake and other solid residues,

23069019

Preparations of a kind used in animal feeding :

23091013

23091015

23091019

23091033

23091039

23091051

23091053

23091059

23091070

23099033

23099035