Decision No 1/1999 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, of 28 January 1999 amending Protocol 4 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part
25. 2. 1999 EN Official Journal of the European Communities L 49/33 II (Acts whose publication is not obligatory) COUNCIL DECISION No 1/1999 OF THE ASSOCIATION COUNCIL between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part of 28 January 1999 amending Protocol 4 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part (1999/149/EC) THE ASSOCIATION COUNCIL, Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part (1), signed in Brussels on 16 December 1991, and in particular Article 38 of Protocol 4 (2) thereof, Whereas the definition of the term ‘originating products' in Protocol 4 needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (herein- after referred to as the EEA), Iceland, Norway and Swit- zerland; Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 of Protocol 4 in connection with the prohibition of drawback and exemption from customs duty; Turkey, it would also be appropriate to extend the cumu- lation system to such products originating in Turkey; Whereas to facilitate trade and simplify administrative tasks it is desirable to amend the wording of Articles 3, 4 and 12 of Protocol 4; Whereas, to take account of changes in processing tech- niques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status, HAS DECIDED AS FOLLOWS: Article 1 Protocol 4 concerning the definition of the concept of ‘originating products' and methods of administrative cooperation is hereby amended as follows: Whereas, in view of the particular arrangements on indus- trial products obtaining between the Community and 1. Article 1(i) shall be replaced by: (1) OJ L 347, 31. 12. 1993, p. 2. (2) Protocol 4 was replaced by Association Council Decision No 3/96 (OJ L 92, 7. 4. 1997, p. 1). ‘(i) “added value” shall be taken to be the ex-works price minus the customs value of each of the ma- terials incorporated which originate in the other L 49/34 EN Official Journal of the European Communities 25. 2. 1999 countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascer- tained, the first price verifiably paid for the products in the Community or Hungary. ' Article 4 Cumulation in Hungary 2. Articles 3 and 4 shall be replaced by the following: ‘Article 3 Cumulation in the European Community 1. Without prejudice to the provisions of Article 2(1), products shall be considered as originating in the Community if such products are obtained there, incor- porating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein (*)) or Turkey (**) in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone suffi- cient working or processing. these countries, provided that 2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community. Products, originating in one of 3. the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries. 4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol. The Community shall provide Hungary, through the the European Communities, with Commission of the Agreements and their corresponding details of rules of origin, which are applied with the other coun- tries referred to in paragraph 1. The Commission of the European Communities shall publish in the Offi- cial Journal of the European Communities (C series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary require- ments. the Czech Republic, 1. Without prejudice to the provision of Article 2(2), products shall be considered as originating in Lithu- ania if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slov- enia, Iceland, Norway, Switzerland (including Liech- tenstein (*)) or Turkey (**) in accordance with the provi- sions of the Protocol on rules of origin annexed to the Agreements between Hungary and each of these coun- tries, provided that the working or processing carried out in Hungary goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such sufficient working or materials have undergone processing. 2. Where the working or processing carried out in Lithuania does not go beyond the operations referred to in Article 7, the product obtained shall be consid- ered as originating in Hungary only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of origin- ating materials used in the manufacture in Hungary. Products, originating in one of 3. the countries referred to in paragraph 1, which do not undergo any working or processing in Hungary, retain their origin if exported into one of these countries. 4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol. Hungary shall provide the Community, through the the European Communities, with Commission of details of the Agreements and their corresponding rules of origin, which are applied with the other coun- tries referred to in paragraph 1. The Commission of the European Communities shall publish in the Offi- cial Journal of the European Communities (C series) the date on which the cumulation, provided for in this Article, may be applied by those countries listed in paragraph 1 which have fulfilled the necessary require- ments. (*) The Principality of Liechtenstein has a customs union with Switzerland, and is a contracting party to the Agreement on the European Economic Area. (**) Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol. ' 25. 2. 1999 EN Official Journal of the European Communities L 49/35 3. Article 12 shall be replaced by the following: ‘Article 12 Principle of territoriality 1. Except as provided for in Article 2(1)(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Hungary. Except as provided for in Articles 3 and 4, where 2. originating goods exported from the Community or Hungary to another country return, they must be considered as non-originating, unless it can be demon- strated to the satisfaction of the customs authorities that: (a) the returning goods are the same as those that were 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. 3. The acquisition of originating status in accord- ance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Hungary on materials exported from the Community or Hungary and subsequently reim- ported there, provided: (a) the said materials are wholly obtained in the Community or Hungary or have undergone working or processing beyond the insufficient operations to being listed in Article 7 prior exported and the total value of the non-originating materials incor- porated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Hungary by applying the provi- this Article, shall not exceed the stated sions of percentage. 5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Hungary, including the value of the materials incor- porated there. The provisions of paragraphs 3 and 4 shall not 6. apply to products which do not fulfil the conditions set out in the list in Annex II or which can be consid- ered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied. 7. The provisions of paragraphs 3 and 4 shall not apply to products coming under chapters 50 to 63 of the harmonised system. 8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Hungary shall be done under the outward processing arrangements, or similar arrange- ments. ' 4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32, the phrase ‘referred to in Article 4' shall be replaced by ‘referred to in Articles 3 and 4'. 5. In the last paragraph of Article 15(6), the date ‘31 December 1998' shall be replaced by ‘31 December 2000'. 6. In Article 26(1), the terms ‘C2/CP3' shall be replaced by ‘CN22/CN23'. (b) it can be demonstrated to the satisfaction of the customs authorities that: 7. In Annex I, note 5. 2: (a) between the indents: (i) the reimported goods have been obtained by working or processing the exported materials ‘— artificial man-made filaments' and (ii) the total added value acquired outside the Community or Hungary by applying the provi- sions of this Article does not exceed 10 % of the ex-works price of the end product for which originating status is claimed. 4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the in the list in Community or Hungary. But where, Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, and ‘— synthetic man-made staple fibres of polypropy- lene' the following shall be inserted: ‘— current conducting filaments'; (b) the fifth example (‘A carpet with tufts. are met. ') shall be deleted. 8. Annex II shall be amended as follows: (a) the following shall be inserted between the entries for HS heading Nos 2202 and 2208: L 49/36 EN Official Journal of the European Communities 25. 2. 1999 ‘HS heading No Description of product Working or processing carried out on non-originating materials that confers originating status (1) (2) (3) or (4) 2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol or higher; ethyl alcohol and other spirits, denatured, of any strength Manufacture: — using materials not classified in heading Nos 2207 or 2208' (b) the entry for chapter 57 shall be replaced by: ‘Chapter 57 Carpets coverings: and other textile floor — Of needleloom felt — Of other felt — Other Manufacture from (1): — Natural fibres or — Chemical materials or textile pulp However: — Polypropylene filament of heading No 5402, — Polypropylene fibres of heading Nos 5503 or 5506 — Polypropylene filament heading No 5501, tow of of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40 % of the ex-works price of the product — Jute fabric may be used as backing Manufacture from (1): — Natural fibres not carded or combed or otherwise processed for spinning or — Chemical materials or textile pulp Manufacture from (1): — Coir or jute yarn (a) — Synthetic or artificial filament yarn — Natural fibres, or — Man-made fibres not staple carded or combed or otherwise processed for spinning — Jute fabric may be used as backing (1) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 5. (a) The use of jute yarn is authorised from 1 July 2000. ' 25. 2. 1999 EN Official Journal of the European Communities L 49/37 (c) the entry for HS heading No 7006 shall be replaced by: ‘7006 Glass of heading Nos 7003, 7004 or 7005, bent, edgeworked, engraved, otherwise drilled, worked, but not framed or fitted with other materials: enamelled or — Glass plate substrate coated with semi- thin dielectric conductor grade, in accordance with SEMII standards (1) film, — Other Manufacture from non-coated glass plate substrate of heading No 7006 Manufacture heading No 7001 from materials of (1) SEMII — Semiconductor Equipment and Materials Institute Incorporated. ' (d) the rule for HS heading No 7601 shall be replaced by: ‘7601 Unwrought aluminium Manufacture in which: — All the materials used are classi- fied within a heading other than that of the product and — The value of all the materials used does not exceed 50 % of the the product ex-works price of or Manufacture by thermal or electro- from unalloyed lytic aluminium or waste and scrap of aluminium' treatment 9. the following Annex shall be added: ‘ANNEX V List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS chapters and headings Chapter 1 Chapter 2 Chapter 3 0401 to 0402 ex 0403 0404 to 0410 0504 0511 Chapter 6 0701 to 0709 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter L 49/38 EN Official Journal of the European Communities 25. 2. 1999 Vegetables, except sweetcorn of heading No 0710 40 00 (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweetcorn of heading No 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption ex 0710 ex 0711 0712 to 0714 Chapter 8 ex Chapter 9 Coffee, tea and spices, excluding maté of heading No 0903 Chapter 10 Chapter 11 Chapter 12 ex 1302 Pectic substances, pectinates and pectates 1501 to 1514 ex 1515 ex 1516 ex 1517 and ex 1518 ex 1522 Chapter 16 1701 ex 1702 1703 1801 and 1802 ex 1902 ex 2001 2002 and 2003 ex 2004 ex 2005 2006 and 2007 ex 2008 2009 Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified Animal or vegetable fats and oils and their fractions, partly or wholly hydrogen- ated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as “opalwax” Margarines; imitation lard and other prepared edible fats Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of heading Nos 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10 Pasta, stuffed, containing more than 20 % by weight of fish, crustaceans, molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives, prepared or preserved by vinegar or acetic acid Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading No 2006, excluding potatoes in the form of flour, meal or flakes, and sweetcorn Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading No 2006, excluding potatoes in the form of flour, meal or flakes, and sweetcorn Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants 25. 2. 1999 EN Official Journal of the European Communities L 49/39 ex 2106 Flavoured and coloured sugar, syrups Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol or higher obtained from agricultural produce listed here Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol obtained from agricultural produce listed here' 2204 2206 ex 2207 ex 2208 2209 Chapter 23 2401 4501 5301 and 5302 This Decision shall apply as from 1 January 1999. Article 2 Done at Brussels, 28 January 1999. For the Association Council The President J. MARTONYI