The Republic of Latvia (hereinafter called Latvia ) and Republic of Poland (hereinafter called Poland),
Having regard to the Free Trade Agreement between the Republic of Poland , of the one part, and the Republic of Latvia, of the other part (1), signed in Warsaw on 28 April 1997, and in particular Article 38 thereof,
Whereas within this Protocol 3 the definition of the term "originating products" 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, the Republic of Poland, the Republic of Hungary, the Czech Republic, the Slovak Republic, the Republic of Bulgaria, Romania, the Republic of Latvia, the Republic of Lithuania, the Republic of Estonia, the Republic of Slovenia, the European Economic Area, Iceland, Norway and Switzerland;
Whereas it would seem advisable to maintain in operation by 31 December 2000 the system of flat rate charges provided for in Article 15 of this Protocol 3 in connection with the prohibition of drawback and exemption from customs duty;
Whereas it would also be appropriate to extend the cumulation system to such products originating in the Republic of Turkey;
Whereas to facilitate and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12 of Protocol 3;
Whereas taking into account of changes in processing techniques 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,
HAVE DECIDED AS FOLLOWS:
Article 1
Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation is hereby amended as follows:
1. Paragraph 1(i) of Article 1 shall be replaced by :
"(i) "added value" shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Article3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in Latvia or Poland".
2. Articles 3 and 4 shall be replaced by the following:
" Article 3:
Cumulation in Poland:
l. Without prejudice to the provisions of Article 2 paragraph l, products shall be considered as originating in Poland if such products are obtained there, incorporating materials originating in the European Community, the Republic of Bulgaria, the Republic of Poland, the Republic of Hungary, the Czech Republic, the Slovak Republic, Romania, the Republic of Lithuania, the Republic of Latvia, the Republic of Estonia, the Republic of Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)* or the Republic Turkey ** in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Poland and each of these countries, provided that the working or processing carried out in Poland goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.
2. Where the working or processing carried out in Poland does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Poland 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 Poland.
3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Poland, 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.
Article 4
Cumulation in Latvia
l. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Latvia if such products are obtained there, incorporating materials originating in the European Community, the Republic of Bulgaria, the Republic of Poland, the Republic of Hungary, the Czech Republic, the Slovak Republic, Romania, the Republic of Lithuania, the Republic of Latvia, the Republic of Estonia, the Republic of Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)* or the Republic Turkey** in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Latvia and each of these countries, provided that the working or processing carried out in Latvia goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.
2. Where the working or processing carried out in Latvia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Latvia 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 Latvia.
3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Latvia, 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.
3. Article 12 shall be replaced by the following:
" Article 12
Principle of territoriality:
l. Except as provided for in Article 2(1), 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 Poland or Latvia.
2. Except as provided for in Articles 3 and 4, where originating goods exported from Poland or Latvia to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
(a) the returning goods are the same 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 accordance with the conditions set out in Title II shall not be affected by working or processing done outside Poland or Latvia on materials exported from Poland or Latvia and subsequently reimported there, provided:
(a) the said materials are wholly obtained in Poland or Latvia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and
(b) it can be demonstrated to the satisfaction of the customs authorities that:
i) the reimported goods have been obtained by working or processing the exported materials; and
ii) the total added value acquired outside Poland or Latvia by applying the provisions 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 Poland or Latvia. But where, in the list in 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, the total value of the non-originating materials incorporated in the territory of Poland or Latvia concerned, taken together with the total added value acquired outside Poland or Latvia by applying the provisions of this Article, shall not exceed the stated 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 Poland or Latvia, including the value of the materials incorporated there.
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered 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 Poland or Latvia shall be done under the outward processing arrangements, or similar arrangements."
4) in Articles 13,14,15,17,21,27,30,32, the phrase " referred to in Article 4" shall be replaced by "referred to in Articles 3 and 4" ;
6) In Article 26 (1) the reference C2/CP3" shall be re laced b the new reference CN22/CN23".
7) In Annex I Note 5.2 :
(a) between the indents
-" artificial man-made filaments" and
- synthetic man-made staple fibres of polypropylene",
the following shall be inserted:
" -current conducting filaments";
(b) the fifth Example ("A carpet with tufts ...are met") shall be deleted;
8) In Annex II shall be amended as follows:
- between the rules for HS headings 2202 and 2208 the rule of the following text shall be inserted:
HS Description Working of processing of non-originating
Heading of product materials that confers originating status
No
(1) (2) (3) (4)
2207 Undenatured ethyl Manufacture:
alcohol of an alcoholic - using materials not classified
strength by volume of 80% in headings 2207 of 2208
vol or higher; ethyl alcohol
and other spirits, denatured,
of any strength.
(b) In Annex II the text of the rule for Charter 57 shall be replaced by :
" Chap- Carpets and other textile
ter 57 floor covering:
- Of needleloom felt Manufacture from1:
- natural fibres or
- chemical materials or
textile pulp However:
- polypropylene filament
of heading 5402,
- polypropylene fibres of
heading 5503 or 5506,
- polypropylene filament
tow of heading 5501,
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
- Of other felt Manufacture from':
- natural fibres not carded
or combed
or otherwise processed
for spinning, or
- chemical materials or
textile pulp
- Other Manufacture from':
- coir or jute yarn (*),
- synthetic or artifcial
filament yarn,
- natural fibres, or
- man-made staple fibres not
carded orcombed or otherwise
processed for spinning
But jute fabric may be used
as backing"
(c)In Annex II the text of the rule for HS heading7006 shall be replaced by :
"7006 Glass of headings 7003,
7004 or 7005, bent,
edgeworked, engraved,
drilled, enamelledor
otherwise worked, but not
framed or ftted with Manufacture from materials
other materials: (substrates) of heading 7006
- Glass plate substrate
coated with dielectric
thin film, semiconductor
grade, in accordance Manufacture from materials
with SEMII standards 1 (substrates) of heading 7001
- Other ";
(d) In Annex II the text of the rule for HS heading 7601 shall be replaced by :
"7601 Unwrought aluminium Manufacture in which:
- all the materials used are classified
within a heading other than that
of the product; and
- the value of all the materials used
does not exceed 50% of the
ex-works price of the product or
Manufacture by thermal or
electrolytic treatment from
unalloyed aluminium or waste
and scrap of aluminium"
(g) the following Annex shall be added:
" Annex V
List of products originating in Turkey to which provisions
of Articles 3 and 4 do not apply,
listed in the order of HS Chapters and Headings
Chapter 1
Chapter2
Chapter 3
0401to0402
ex 0403- Buttermilk, curded 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
0404to0410
0504
Chapter6 Vegetables, except sweetcorn of heading No.07104000 (uncoked or
0701to0709 cooked by steaming or boiling in water), frozen
ex 0710 Vegetables, except sweetcorn of heading No. 07119030, provisionally
preserved (for example, by sulphur oxide gas, in brine, in sulphur
ex 0711 water or in other preservative solutions), but unsituable in that state
for immediate cunsumption
0712to0714
Chapter8 Cofee, tea, spices, excluding mate of heading No.0903
ExChapter 9 Pectic substances, pectinates and pectates
Chapter 10
Chapter 11 Other fixed vegetable fats and oils and their fractions, party or
Chapter 12 wholly hydroheneted,
Ex1302 Inter-caterefied, re-catarified ,whether or not refined, but not further
1501to1514 prepared, excluding hydrogenated castor oil known as " opal-wax"
ex1515 Margefines, imitation lard and other prepared edible fats
Residues resulting from the treatment of farty substances or animal
or vegetable waxes, excluding degras
ex1517 and
ex1518
ex1522 Other sugars, including chemically pure lactose, maltose, glucose
and fructose, in solid form; sugar syrups not containing added
Chapter 16 flavouring or coloring matters; artificial honey, whether or not moxed
1701 with natural honey; caramel excluding that heading
ex1702 No.17021100,17023051, 17023059, 17025000 and 17029010
1703 Pasta, stuffed, containing more that 20% by weight of fish,
1801and crustaceans, molluscs or other squistic invertebretes, sauseges and
1802 the meat or meat offal or any kind, including fats of all kinds
ex 1902 Cucumbers and gherkins, onions, mango chutley, fruit of the genus
Capsicum other than sweet papers or pimentes, mushrooms and
olives, prepared or preserved by vinegar or acetic acid
ex 2001
2002 and 2003 Other vagetables prepared or preserved otherwise than by vinegar or
ex 2004 acatic acid, frozen, other than products of heading No.2006, excluding
ex2005 potatoes in form of flour, meat or flakes and sweet corn
Other vagetables prepred or preserved otherwise than by vinegard
or acetic acid, not frozen, other than products of heading No.2006,
excluding potatoes in form of flour, meat or flakes and sweet corn
2006 and Fruits, nuts and other eligible parts of plants, otherwise prepared or
2007 presereved, whether or not containing added sugar or other sweetining
ex2008 matter or spirit, not elsewhere specified or included, ecxluding peanut
butter, palm hearts, maize, yarns, 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
2009
ex 2106
2204 Flavoured and coloured sugar, syrups
2206
ex 2207 Undenatured etyl alcohol of an alcoholic strength by volume of
80% vol or higher obtained from agricultural produce listed here
ex 2208 Undenatured etyl alcohol of an alcoholic strength by volume of
80% vol or higher obtained from agricultural produce listed here
2209
Chapter 23
2401
4501
5301 and 5302
Article 2
1. This Agreement shall enter into force on the date of the last notification on the fulfilment of internal legal requirements for its entry into force.
The Republic of Latvia shall apply this Agreement provisionally from 1 January 1999 till all its internal legal requirements for its entry into force have been fulfilled.
* The Principality if Liechtenstein has a Customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.
** Cumulation as provided for this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.
1 SEMII - Semiconductor Equipment and Materials Institute Incorporated.