Annex (II) Defining the Concept of Products with an Origin Attribute and Methods for Administrative Cooperation Protocol

Transcription

1 Annex (II) Defining the Concept of Products with an Origin Attribute and Methods for Administrative Cooperation Protocol Chapter One General Provisions Article Definitions For the purposes of this Protocol the following terms shall be defined as follows: a- "" shall mean all operation or production cluding assembly processes or specific processes. b- "Materials" shall mean any elements, raw material, components, parts etc. that are used in the of the product. c- "Product" shall mean the product that was produced even if it is going to be used later in other processes. d- "Goods" shall mean both Material and Products. e- "Custom Value" shall mean the value that is defined in accordance with the Agreement of 1994 for the application of Article Seven of the General Agreement on Tariffs and Trade (The World Trade Organization Agreement for Custom Valuation). f- "Product Price Just in Time Delivery" shall mean the price payable for the Good just in time delivery for the producer who carries out the last operation or production process in the Member Country, provided this price includes the value for all the used Material from which is deducted any taxes or internal charges that may be redeemed when the Good is exported. g- "Materials Value" shall mean the Custom Value when the used Materials with an origin is imported, or the first confirmed price payable for the Material in the Member Country, if the Custom Value is unknown or it is impossible to verify it. h- "Value of the Material with an Origin Attribute" shall mean the value of the Materials stipulated in sub-paragraph (g) after carrying out all the necessary changes. i- "Added Value" is Good just in time delivery from which is deducted the Custom Value for each Material that is part of the of the Good that does not have the origin of another country referred to in Article (3) with which accumulation is applied. When the Custom Value is unknown or is impossible to determine, then the value shall be the first paid price for the Products in the Member Country which can be verified. j- "Chapters and Clauses" shall mean the chapters and clauses formed from four decimal digits used in the description and formatting of the Good in the custom tariff in accordance with the for Goods Description and Formatting, referred to in this Protocol by the term " " (HS). k- "Classified" refers to the classification of the Product or the Material in accordance with a specific clause.

2 l- "Shipment" shall mean the Products whether those that were sent at one go from one of the exporters to one of the importers or those that are covered by one bill of lading that covers its shipment from the exporter to the assignee. If such a document is not present, then it will be covered by one invoice. m- "Territory" shall include territorial waters. n- "European Union": includes the fifteen countries forming it on the date of signing this Agreement and every country or group of countries that join it later, whether the European countries referred to in Article Three or any other country not included in this Article. Chapter Two Defining the Concept of Products with an Origin Attribute Article (2) General Requirements For the purposes of applying the Agreement, the following Products shall be considered to have an origin of a Member Country: (a) Products that are completely obtained inside the Member Country in accordance with Article (4); (b) Products that are obtained inside the Member Country and that contain Materials that were not completely obtained inside the Member Country, provided that these Materials have underwent adequate operation or production side the Member Country in accordance with Article (5) of this Protocol. Article (3) Origin Accumulation in the Member Country 1- Without prejudice to the provisions of the Article (2) Products shall have an origin of one of the Member Countries if they are obtained therein by adding to them Materials with an origin of one of the Member Countries or an origin of one of the following countries: Bulgaria, Switzerland (Liechtenstein ) 1, the Czechs Republic, Estonia, Hungary, Iceland, Lithuania, Latvia, Norway, Poland, Romania, Slovenia, Slovak Republic, Turkey 2, or the European Union, provided that the operation or production processes that were carried out on these Materials inside the Member Country referred in Article (6) are more. It is unnecessary to carry out adequate operation or production processes on these Materials. 2- Without prejudice to the provisions of Article (2) Products shall be considered to have an origin of one of the Member Countries if they are obtained therein by adding to them Materials with an origin of one of the countries that belong to the Euro-Mediterranean Partnership (Partnership) that is based on the 1 There is a custom union between the province of Liechtenstein and Switzerland, which is a contracting party in the European Economic Area Agreement. 2 The accumulation subject of this Article is not applied on Materials with a Turkish origin and that are listed in the list stipulated in Annex (V) of the Euro-Mediterranean Rules of Origin Protocol.

3 Barcelona Process that was endorsed on November 1995 with the exception of Turkey, provided that the operation or production processes which are realized in this Member Country exceed the processes referred to in Article (6). It is unnecessary to realize adequate operation or production processes on these Materials. 3- When the operation or production processes that occur in one of the Member Countries do not exceed the processes referred to in Article (6), then the Product that was obtained shall be considered to have an origin of that Member Country only when the actual Added Value there exceeds the value of used Materials that have an origin of any of the other countries referred to in paragraphs 1 and 2. If the previous does not occur then the Product that was obtained shall be considered to have an origin of the country in which the highest value of the Materials with an origin that were used in the that Member Country. 4- The Products with an origin of the any of the countries referred to in paragraphs 1 and 2 that did not undergo any operation or production one of the Member Countries shall maintain their origin if they are exported to any of these countries. 5- The accumulation referred to in this Article cannot be applied except under the following conditions: (a) That there be a preferential trade agreement in accordance with Article (24) of the General Agreement on Tariffs and Trade among countries that participated in endowing the Good with an origin and the country to which that Good is exported. (b) That the Materials and Products have gained the origin through the application of rules of origin which correspond to the rules stipulated in this Protocol. (c) That the notifications of the fulfillment of requirements necessary to apply the accumulation are published in the Official Gazettes of every Member Country in accordance with its special measures. The accumulation stipulated in this Article shall be applied as of the date stipulated in the notification of fulfilling the ratification measures which is published in the Official Gazette of each Member Country. Each Member Country shall provide the other Member Countries through the Ministers of Foreign Affairs Committee with the details of the agreements applied with the other countries referred to in paragraphs 1 and 2 including their dates of coming into effect and their rules of origin. Article Four Products that were Fully Obtained

4 1- The following Products shall be considered to have been fully obtained in the Member Country: a- Mining products that are extracted from its Territories or its seabed, b- Agricultural products that have been produced or harvested there, c- Live animals that were born and raised there, d- Products of live animals that were raised there, e- Products that were obtained by hunting or fishing there, f- Sea fishing products and other Products that were obtained from the sea beyond the territorial waters of the Member Country through its ships (boats), g- Products that are manufactured onboard of ship factories of the Products referred to in paragraph (f) only, h- Used Goods that were assembled there and that are only suitable for recovery of raw materials, including used tires that are suitable only for renewal or use as exhausts (?), i- Scarp and exhausts (?) arising from production processes that occur there, j- Products dug from the sea soil or soil outside its sea waters provided it has the exclusive right to exploit this soil, k- Goods produced there from the Products defined in paragraphs (a) to (j). 2- The term "ships" and "ship factories" stipulated in clauses (f) and (g) paragraph shall apply only to ships and ship factories that: a- Have been registered or recorded in a Member Country, b- Sail under the flag of a Member Country, c- Have at least 50% owned by citizens of the Member Country or a company whose headquarters is located in the Member Country, and whose manager or managers, its board of directors' president or the council supervising it, and the majority of the members of those councils are citizens of the Member Country. In case of joint liability companies or limited liability companies, at least half of its capital should be owned by the Member Country or general assemblies or citizens of the Member Country. d- Have a captain and officers who are citizens of the Member Country, e- Have 75% of its sailors who are citizens of the Member Country. Article (5) Products that have been adequately Operated or Produced 1- For the purposes of Article (2), Products that have not been fully obtained shall be considered Products that have been adequately operated or produced if the conditions stipulated in the said list in Annex of Annex Two of this Protocol are fulfilled. The conditions referred to in paragraph 1 above explain, for all the Products covered by this Agreement, the operation or production processes that must be carried out on the Materials that do not enjoy the origin used in the operation or production. These conditions are applied on these Materials only. Thus, it follows that if a Product that has gained the origin by fulfilling the conditions stipulated in the list are used in the of another Product then the conditions applied on

5 the Product that was used in the will not apply thereon and Materials that do not have an origin that have been used in its shall not be taken into consideration. 2- Except for the provisions of paragraph, Materials that do not have an origin and that must not be used in accordance with the conditions stipulated in the said list in Annex Two may be used, provided: a- That their total value does not exceed 10% of Product just in time delivery, b- That the application of this paragraph does not lead to exceeding any of the percentages stipulated in the list that defines the maximum value of the Materials that do not have an origin. This paragraph shall not apply to Products that fall in Chapters (50) to (63) of the. 3- Paragraphs and (2) shall be applied in accordance with the provisions of Article (6). Article (6) Inadequate Operation or Processes 1- Without prejudice to the provisions of paragraph (2), the following processes shall be considered operation or production adequate to grant the Products an origin, whether the requirements of Article (5) are fulfilled or not: a- Processes that are carried out to guarantee the maintenance of the Products in a good state when being transported or stored. b- Disassembly and assembly of packages. c- Washing, cleansing, removing soil, oxide, oil, coating or other paints. d- Ironing or pressing textiles. e- Simple coating or polishing processes. f- Removing veneer or partial or complete whitening or polishing and glazing grains and rice. g- Processes related to tinting sugar or forming sugar in lumps. h- Removing husks, fruit kernel, nuts and vegetables. i- Whetting, simple grinding or simple chopping. j- Sifting, sieving, sorting, arranging, categorizing and matching (including forming groups of goods). k- Simple packaging bottles or packets or vials or bags or trunks and boxes, pasting labels or (not clear) and all other simple wrapping processes. l- Pasting or printing signs, marks, logos and other distinct marks on Products and their wrappings. m- Processes of simple mixing of Products even if they are of different kinds, n- Simple processes for assembling parts of Goods to form a final product, or disassembling Products into parts. o- Carrying out two processes or more from those stipulated in paragraphs (a) to (n). p- Animal slaughter.

6 2- All processes that were carried out on the Product, whether in one of the Member Countries, a European Union country or one of the countries referred to in Article (2) of Article (3), shall be taken into consideration when determining if the operation or production processes that have been carried out on this Product are considered inadequate to grant the origin in accordance with the content of paragraph. Article (7) Eligibility Unit 1- The Eligibility Unit concerned with applying the provisions of this Protocol is the specific Product, which is considered the basic unit when determining the custom category by using the designations of the. This is followed by: a- When a Product is formed from a group or assembly of a number of Goods categorized under one clause in accordance with the, then the total shall form an Eligibility Unit b- When a shipment is formed from a number of corresponding Products categorized under the same clause of the then each Product must be taken separately when applying the provisions of this Protocol. 2- When the packing is listed with the Product for purposes of categorization in accordance with the general rule no. (5) of the then it shall be also be included for purposes of determining the origin. Article (8) Axillaries (Accessories), Spare Parts, Tools The axillaries, spare parts and tools sent with the equipment, machine, appliance, device or car, which are part of the apparatus and are included in its price or those which are not issued a separate invoice, shall be considered as one unit with the equipment, machine, appliance, device or car. Article (9) Groups Groups, whose definition is stated in the general rule no. (3) of the, are considered to have an origin when all the components of the Products have an origin. In spite of this, when a group is formed from products with an origin and Products that do not have the origin then the group as one unit will be considered to have an origin provided that the value of the Materials that do not have the origin does not exceed 15% of group just in time delivery. Article (10)

7 Neutral Elements When determining the origin of a Product, it is unnecessary to determine the origin of the following elements which were used in its production: a- Power and fuel, b- The factory and equipment, c- The machines and tools, d- Goods that do not enter and are not meant to be entered in the final formation of the Product. Chapter Three The Territorial Requirements Article (11) The Principle of Territoriality 1- With the exception of the provisions of Article (3) and paragraph (3) of Article (11), all the conditions stipulated within Chapter Two regarding obtaining the origin in the Member Country must be fulfilled. 2- If the Goods with an origin that were exported from a Member Country to another country, with the exception of the provisions of Article (3), are returned then they should be considered not to have the origin, unless it was possible to satisfactorily prove to the custom authorities that: a- The Goods that were returned are the same Goods that were exported; b- Only processes necessary to maintain them in a good state were carried out on them when they were in that country or during exportation. 3- Obtaining an origin in accordance with the conditions stipulated in Chapter Two will not be effected with the operation or production processes that occur outside one of the Member Countries on Materials exported from one of the Member Countries and that are imported after that, provided: a- That those Materials have been fully obtained in the Member Country or have undergone operation or production processes that exceed the processes referred to in Article (6) before they were exported; b- It is possible to satisfactorily prove to the custom authorities or any other competent entity that: - The Goods that have been re-imported are the outcome of operation or production processes of the exported Materials, - The total of the Added Value realized outside the Member Country as a result of the application of the provisions of this Article do not exceed 10% of the final price of the Product Just in Time Delivery, for which the origin is being requested. 4- For the purposes of paragraph (3), the conditions for obtaining the origin defined in Chapter Two will not apply to operation or production operations that occur outside one of the Member Countries. But when there is a rule in the list stipulated in Chapter Two that defines the maximum limit of the value of the Materials that do not have the origin and that are contained in the Good

8 in order to define the origin of the final Product, then the total value of the Materials that do not have an origin and which are used in the Territories of the concerned Member Country combined with the total of the Added Value that was realized outside this country by applying the provisions of this Article will not exceed the defined percentage. 5- For the purposes of applying the provisions of paragraphs (3) and (4) the total of the Added Value shall mean all the costs that occur outside one of the Member Countries including the value of the Materials used there. 6- The provisions of Articles (3) and (4) shall not apply to the Products that do not fulfill the conditions set in the list stipulated in Chapter Two or those that can be only considered to have adequately undergone operation or production processes if the general grace stated in paragraph (2) of Article (5) is applied. 7- The provisions of paragraphs (3) and (4) shall not be applied on Products stipulated in Chapters (50) to (63) of the. 8- Any operation or production processes of those contained in the provisions of this Article that occur outside the Member Country shall be realized in the framework of the operation measures outside or any similar measures. Article (12) Direct Transport 1- The preferential treatment granted in accordance with the Agreement shall be applied on the Products that have fulfilled the requirements of this Protocol and that are directly transported among the Member Countries or across areas or other countries referred to in Article (3) with which accumulation is applied. In spite of this, Products comprising one shipment may be transported across other areas, should the need arise, such as emptying and reshipping or temporary storage in those areas, provided they remain under the supervision of custom authorities in the transit or storage country, and that same do not undergo any processes other than emptying or reshipping or any operation with the aim of maintaining same in a good state. Products that have an origin may be transported through pipelines across areas other than the areas of the Member Country. 2- A verification should be submitted to the competent authorities in the importing country that all the conditions stipulated in paragraph should be fulfilled by submitting: a- One bill of lading covering the passage from the exporting country through the transit country, or b- A certificate issued by the custom authorities in the transit country including: 1- A detailed description of the Products, 2- The date of emptying and reshipping the Products, and in cases where it is applicable, the names of the ships or the other transportation means that were used,

9 3- A certificate of the conditions under which the Products remained in the transit country. c- In case the aforesaid is not available, then any documents that verifies this. Article (13) Exhibitions 1- Goods which fulfill the origin and which are sent for display in a country other than those referred to in Article (3) with which accumulation is applied and are sold after the display to one of the Member Countries shall benefit when being imported from the provisions of the Agreement provided that it is satisfactorily proven to the competent authorities that: a- An exporter has sent those Products from the Member Country to the country in which the exhibition is being held and in which same were displayed, b- The Products were sold or disposed of by that exporter to a person in the Member Country, c- Those Products were shipped during the exhibition or directly after it ended in the same state they were in when they were sent to the exhibition, and d- Those Products were not used since their shipment except for display in the exhibition. 2- An origin substantiation must be issued or prepared in accordance with the provisions of Chapter Five and must be submitted to the competent authorities in the importing country through ordinary methods. It must include the name and exhibition address, and when necessary, it may be necessary to submit an additional document that proves the conditions of display. 3- Paragraph shall be applied to all commercial, industrial, agricultural and handicrafts exhibitions or similar general exhibits that are not organized for special purposes inside shops or headquarters for the purpose of selling foreign products, and during which time the Products are subject to the supervision of the competent authorities. Chapter Four Drawback or Exemption Therefrom Article (14) Prohibition of Drawback or Exemption Therefrom 1- It is impermissible to realize drawback in the Member Country in any form or to exempt therefrom the Products that do not enjoy an origin and that are used in producing Products with an origin of a Member Country or one of the countries referred to in Article (3) and for which an origin substantiation is issued in accordance with Chapter Five. 2- The prohibition stipulated in paragraph shall be applied to any measures for redemption, exemption or full or partial non-payment of custom duties or any other duties with a similar effect applied in the Member Country on Materials

10 used in the, when this redemption, exemption or full or partial nonpayment is actually applied when exporting the Products in which those Materials were used. This is not applied when these Products are kept for local consumption. 3- The source of the Products that issued the origin substantiation must be ready to submit at any time upon the request of the custom authorities all the necessary documents that substantiate that a drawback did not occur in regard to Materials that do not enjoy an origin that were used in Producing certain Goods, and that all the custom duties or duties with a similar effect applicable on such Materials have been actually settled. 4- The provisions of paragraphs to (3) shall also be applied on packaging in accordance with the concept of paragraph (2) of Article (7) and on axillaries, spare parts and tools in accordance with the concept of Article (8) and on Products forming groups in accordance with the concept of Article (9), and that in case such Products do not enjoy the origin. 5- The provisions of paragraphs to (4) only shall be applied on Materials covered by the Agreement. In addition to this they will not impede the application of the Regulation of Redemption of Duties on agricultural Products exports which is applied when exporting in accordance with the provisions of the Agreement. 6- The prohibition referred to in paragraph above shall not be applied on Products that have an origin of a Member Country and that were obtained without applying accumulation with any other country referred to in Article (3). 7- In spite of the provisions of paragraph a Member Country can apply, with the exception of the Products stipulated in Chapters to (24) of the, drawback measures or exemption from custom duties or duties with a similar effect that are applied on Materials that do not enjoy an origin used in the of Products with an origin and that in accordance with the following conditions: a- Levy a 5% as a custom duty on the Products stipulated in Chapters (25) to (49) and (64) to (97) of the, or a lesser percentage if same is applied in the Member Country. b- Levy a 10% as a custom duty on the Products stipulated in Chapters (50) to (63) of the or a lesser percentage if same is applied in the Member Country. The provisions of paragraph (7) shall stay in effect until 31 December 2009 with the possibility of reviewing them through a mutual agreement with the European Union. Chapter Five Substantiating the Origin Article (15) General Requirements

11 1- Products that have an origin of any Member Country shall benefit from this Agreement in accordance with the provisions of this Protocol, when same are exported to another Member Country and that upon the submittal any of the following documents: a- A Euro-Mediterranean Movement Certificate, a sample of which is attached in Annex no. (3), or b- In the cases stipulated in paragraph of Article (21) a notification referred to by the term "Euro-Mediterranean Invoice Statement", submitted by the exporter on the invoice or on the receipt notification or any commercial document that adequately describes details of certain Products to enable their recognition them. Annex no. (4) contains the text of the Euro-Mediterranean Invoice Statement". 2- Without prejudice to the provisions of paragraph, Products with an origin in accordance with this Protocol shall benefit in the cases specified in Article (26) of this Protocol with no need to submit the documents referred to above. Article (16) Procedures for Issuing a Euro-Mediterranean Movement Certificate 1- The custom authorities or the competent governmental authorities in the exporting country shall issue a Euro-Mediterranean Movement Certificate upon the written request of the exporter or under his/her liability through a representative delegated by him/her. 2- For this purpose, the exporter or his/her delegate, shall complete the Euro- Mediterranean Movement Certificate, a sample of which is set in Annex no. (3) in the French or English language, and a request application, a sample of which is contained in Annex no. (3), in accordance with the measures in effect in the exporting country. If the data is handwritten then it should be written in block letters in ink. The data of the description of the Products should be filled in the place allocated for that without leaving any empty spaces. When a place is not completely filled a horizontal line should be placed under the last line of the description and the empty space shall be cancelled. 3- The exporter who submitted a request to obtain a Euro-Mediterranean Movement Certificate, must provide at any time upon the request of the custom authorities or the competent governmental authorities of the exporting country in which this certificate is issued, all the documents necessary to substantiate the origin of the concerned Products and to fulfill the remaining requirements of this Protocol. 4- The custom authorities or the competent governmental authorities in the Member Country shall issue a Euro-Mediterranean Movement Certificate if the concerned Products are considered Products with an origin of the Member Country

12 or any country of the other countries referred to in Article (3) with which accumulation is applied, and the remaining requirements of this Protocol are fulfilled in the country issuing that certificate. - Accumulation was applied by using Materials that have an origin of any of the countries referred to in Article (3), or - Products were used as Materials in the scope of accumulation to produce Products for export to one of the countries referred in Article (3), or - The Products were re-exported from the importing country to another country of those referred to in Article (3). 5- The Euro-Mediterranean Movement Certificate should contain one of the following declarations, in English, of those stipulated in space no. (7): - If the origin is realized as a result of accumulation with one or more country of those referred to in Article (3): "(Name of country or countries). WITH CUMULATION APPLIED" - If the origin is realized without the application of accumulation with one country or more of those referred to in Article (3): "NO CUMULATION APPLIED" 6- The custom authorities or competent governmental authorities issuing the Euro- Mediterranean Movement Certificate shall realize any steps necessary to substantiate the origin of the Products and the fulfillment of the remaining requirements of this Protocol. For this purpose they are entitled to request any proof and undertake any inspection of the accounts of the exporter or any review considered appropriate, and to verify the correct completion of the sample referred to in paragraph (2). It shall verify in specific that the area allocated for describing the Products has been completed in a manner that leads to the elimination of all possibilities of forgery by addition. 7- The date of issuing a Euro-Mediterranean Movement Certificate shall be recorded in the space set for that in this certificate. 8- A Euro-Mediterranean Movement Certificate shall be issued by the custom authorities or competent governmental authorities and shall be made available to the exporter as soon as the shipping is completed or the actual exporting is guaranteed. Article (17) Issuance of a Euro-Mediterranean Movement Certificate Retrospectively

13 1- In spite of the provisions of paragraph (8) of Article (16), it is possible as an exception to issue a Euro-Mediterranean Movement Certificate after exporting the Products related to this Certificate, if: a- It was not issued at the time of export as a result of mistakes or unintentional deletion processes or special conditions, or b- It is satisfactorily proven to the custom authorities or competent governmental authorities that the Euro-Mediterranean Movement Certificate was issued but was not accepted at the time of importing for technical reasons. 2- In order to apply paragraph, the exporter must clarify in his/her request the place and date of exporting the Products related to the Euro-Mediterranean Movement Certificate and the reasons for his/her request. 3- The custom authorities or competent governmental authorities may retrospectively issue a Euro-Mediterranean Movement Certificate after verifying that the information submitted in the request of the exporter agrees with the corresponding information in its files. 4- The Euro-Mediterranean Movement Certificate which is retrospectively issued in English must bear the following term: ISSUED RETROSPECTIVELY 5- The term referred to in paragraph (4) must be listed in the space allocated for it in the Euro-Mediterranean Movement Certificate. Article (18) Issuing a Duplicate Copy of the Euro-Mediterranean Movement Certificate 1- In case a Euro-Mediterranean Movement Certificate was stolen, lost or damaged the exporter may submit a request to the custom authorities or competent governmental authorities that issued the Certificate to issue a copy thereof in accordance with the export documents kept therewith. 2- The copy referred to in paragraph above must bear the following term in English: DUPLICATE 3- The term referred to in paragraph (2) shall be stipulated in the space allocated for it in the copy of the Euro-Mediterranean Movement Certificate. 4- The copy shall bear the same date of issuing the original Euro-Mediterranean Movement Certificate and shall become effective as of that date. Article (19)

14 Issuing a Euro-Mediterranean Movement Certificate on the Basis of a Previously Issued Origin Substantiation When Goods with an origin are placed under the supervision of custom authorities or competent governmental authorities in a Member Country then the original origin substantiation may be replaced with one or more Euro-Mediterranean Movement Certificates and that for the purpose of sending all or some of these Products to another location in the Member Country. A replacement Euro- Mediterranean Movement Certificate or Certificates may be issued with the knowledge of the custom authorities or competent governmental authorities under whose supervision the Products were placed. Article (20) Accountancy Method for Separated Materials 1- When there is a high expense or a financial difficulty in maintaining the stock separately for corresponding Materials with an origin and Materials with no origin and which replace one another, then the custom authorities or competent governmental authorities, upon the written request of the concerned person, may delegate the use of what is called Accountancy Method for Separated Materials to manage this stock. 2- This method must be capable of guaranteeing that during a specific period the number of Products that were obtained and which can be considered to have an origin are the same that may have been obtained had there been an actual separation of the stock. 3- The custom authorities or competent governmental authorities may grant this delegation in accordance with any conditions it considers appropriate. 4- This method shall be registered and applied in accordance with the basis of the accountancy principles applied in the country in which the of the Product is carried out. 5- The beneficiary may issue or request an origin substantiation, as the case may be, for the quantity of the Products that may be considered to have an origin. The beneficiary may, upon the request of the custom authorities or competent governmental authorities, submit a declaration concerning the manner of managing those quantities. 6- The custom authorities or competent governmental authorities shall supervise the use that was carried out as a result of the delegation and may also withdraw it at any time when the person to whom the delegation was issued uses it in any improper manner whatsoever or if same fails to fulfill any other conditions issued in this Protocol. Article (21) Condition of Preparing a Euro-Mediterranean Invoice Statement

15 1- The Euro-Mediterranean Invoice Statement referred to in paragraph (1/b) of Article (16) may be issued by: a- An accredited source in the framework of Article (22), or b- Any source of any delivery containing one package or more of Products with an origin and whose value does not exceed six thousand (6,000) Euros. 2- A Euro-Mediterranean Invoice Statement may be issued in the following cases: - If the concerned Products are considered as Products with an origin of a Member Country or any country of the countries referred to in Article (3) with which accumulation is applied and the remaining requirements of this Protocol are fulfilled in the country issuing this Certificate, - Accumulation was applied by using Materials with an origin of any of the countries referred to in Article (3), or - Using Products as Materials in the framework of accumulation to produce Products for export to any of the countries referred to in Article (3), or - The Products were re-exported from the importing country to another country from the countries referred to in Article (3), - The Euro-Mediterranean Invoice Statement should include one of the following declarations in English: - If origin occurs as a result of accumulation with another country or more of the countries referred to in Article (3): (Name of the country or countries)... CUMULATION APPLIED WITH - If origin occurs without the application of accumulation with another country or more of the countries referred to in Article (3): NO CUMULATION APPLIED 3- The exporter who prepares the Euro-Mediterranean Invoice Statement shall be prepared to submit, upon the request of the custom authorities or competent governmental authorities of the issuing country, all the appropriate documents that substantiate the origin of the concerned Products and to fulfill the remaining requirements of this Protocol. 4- The exporter shall prepare the Euro-Mediterranean Invoice Statement on a typewriter or by writing in block letters on a receipt notification or any other commercial document for the statement whose text is stipulated in Annex no. (4) by using one of the languages stipulated in that Annex and in conformity with the measures of the exporting country. If the Statement is hand written, then it has to be written in ink and in block letters.

16 5- The Euro-Mediterranean Invoice Statement must bear the handwritten original signature of the exporter, and in spite of that the exporter accredited in accordance with the provisions of Article (22) is not requested to sign these statements provided the exporter submits to the custom authorities or competent governmental authorities of the exporting country a written pledge to accept full responsibility for any invoice of his/hers, exactly as if it was signed by his/her handwriting. 6- A Euro-Mediterranean Invoice Statement may be prepared by the exporting party when exporting his/her Products or after exporting provided it is submitted to the importing country during a period that does not exceed two years as of the date of importing the Products related thereto. Article (22) Accredited Exporter 1- The custom authorities or competent governmental authorities in the exporting country may delegate any exporter, referred to hereinafter by the term "accredited exporter", who shall export continuous shipments of Products in the framework of this Agreement to prepare a Euro-Mediterranean Invoice Statement regardless of the value of the concerned Products. The exporter who wished to obtain such a delegation must provide all the necessary guarantees to the custom authorities or competent governmental authorities to substantiate the origin of the Products and to fulfill the remaining requirements of this Protocol. 2- The custom authorities or competent governmental authorities may grant the accredited exporter in accordance with any conditions it deems appropriate. 3- The custom authorities or competent governmental authorities may grant the accredited exporter a number which is mentioned on the invoice statement. 4- The custom authorities or competent governmental authorities shall supervise the use of the delegation by the accredited exporter. 5- The custom authorities or competent governmental authorities may withdraw the delegation at any time. This will occur when the accredited exporter does not provide the guarantees referred to in paragraph or is unable to fulfill the conditions stipulated in paragraph (2) or misuses the delegation. Article (23) Origin Substantiation Powers 1- The power to substantiate the origin shall continue for four months as of the date of its issuance in the exporting country. It should be submitted within this period to the custom authorities or competent governmental authorities in the importing country.

17 2- An origin substantiation submitted to the custom authorities or competent governmental authorities in the importing country after the deadline for submitting it, which is defined in paragraph of the preferential treatment application, may be accepted if the reason for this failure to submit it on the deadline arises from exceptional conditions. 3- In other cases of delay in submitting the origin substantiation, the custom authorities or competent governmental authorities in the importing country may accept it if the Products arrived before the said deadline. Article (24) Submitting the Origin Substantiation The origin substantiation shall be submitted to the custom authorities or competent governmental authorities in the importing country in accordance with the measures applied in that country. Those authorities may request a translation of the origin substantiation and may also request that the importing statement be accompanied with a declaration from the importer that the Products fulfill the conditions required to apply this Agreement. Article (25) Importing in Installments When importing dismantled or non-assembled Products in parts upon the request of the importer and under the conditions set by the custom authorities or competent governmental authorities in the importing country in accordance with the general rule no. (2/a) of the under section (16) and (17) or from clauses (7308) and (9406) of the, then one origin substantiation must be submitted to the custom authorities or competent governmental authorities upon importing the first part. Article (26) Exemption from Origin Substantiation 1- The entry of Products sent in small parcels from one person to another or that are part of the personal luggage of a traveler is permitted on the basis that same has an origin substantiation without a request to provide an origin substantiation, and that based on the assumption that the Products are not imported for trade and that they are declared to have fulfilled the requirements of this Protocol and provided that there is no doubt regarding the correctness of this declaration. In case the Products are sent by mail then this declaration should be submitted on the custom declaration (CN 22 and CN23) or on a paper attached to this document. 2- Imports that are not carried out routinely and that only contain Products for personal use of the recipient, travelers or their families shall not be considered

18 imports for trade purposes if it is clear from the nature and quantity of the products that same are not for commercial purposes. 3- In addition to that, the total value of those Products should not exceed 500 Euros or its equivalent in local currency in the Member Country in regard to small parcels, or 1,200 Euros or its equivalent in local currency in the Member Country in regard to Products that are considered part of the personal luggage of travelers. Article (27) Documents Supporting Substantiation The documents referred to in Article (17) paragraphs (3) and Article (21) paragraph (3) which are used to substantiate that the Products listed in the Euro-Mediterranean Movement Certificate or the Euro-Mediterranean Invoice Statement have an origin of the Member Country or any of the countries referred to in Article (3) while fulfilling the remaining requirements of this Protocol, and may be formed, without limitation, from: a- A direct proof of which was carried out with the knowledge of the exporter or the importer to obtain the concerned Goods, for example through his/her accounts or internal books, b- Documents substantiating the origin of the used Materials, issued or prepared in the Member Country, where these documents are used in accordance with the national law. c- Documents substantiating that the operation or production processes that were carried out on the Materials in the Member Country, issued or prepared in the Member Country, where these documents are used in accordance with the national law. d- A Euro-Mediterranean Movement Certificate or the Euro-Mediterranean Invoice Statement substantiating the origin of the used Materials, issued or prepared in the Member Country in accordance with this Protocol, or in one of the countries referred to in Article (3) in accordance with the rules of origin that correspond completely with the rules of this Protocol. e- An appropriate proof regarding operation or production processes that were carried out outside the Member Country by applying Article (11) which substantiates that the requirements of that Article were fulfilled. Article (28) Maintenance of Origin Substantiation Documents and Supporting Documents 1- The exporter who submitted a request to obtain a Euro-Mediterranean Movement Certificate shall maintain the documents referred to in paragraph (3) of Article (17) for at least three years. 2- The exporter who prepared the Euro-Mediterranean Invoice Statement shall maintain a copy thereof and the documents referred to in paragraph (3) of Article (21) for at least three years.

19 3- The custom authorities or competent governmental authorities of the exporting country that issued Euro-Mediterranean Movement Certificate shall maintain the request application referred to in paragraph (2) of Article (17) for at least three years. 4- The custom authorities or competent governmental authorities of the importing country shall maintain the Euro-Mediterranean Movement Certificate or the Euro- Mediterranean Invoice Statement submitted to it for at least three years. Article (29) Differences and Mistakes of Formality 1- The discovery of slight differences in the data recorded in the origin substantiation and those stipulated in the documents submitted to the custom authorities or the competent governmental authorities for the purpose of carrying out measures to import the Products shall not lead to considering the origin substation automatically void, if it is properly substantiated that the documents concern the submitted Products. 2- Clear mistakes of formality such as a mistake in copying the origin substantiation on a copywriter shall not lead to the rejection of these documents if the said mistakes do not give rise to doubts regarding the correctness of the data stipulated in these documents. Article (30) Value of the Amounts in Euro 1- For the purpose of applying the provisions of Article (21) paragraph (1/b) and Article (26) paragraph (3) in cases were the invoice of the Products is in a currency other than the Euro those values in currencies of the countries referred to in Article (3) equaling the value in Euro shall be annually determined with the knowledge of each of the concerned countries. 2- The shipment shall benefit from the provisions of Article (21) paragraph (1/b) or Article (26) paragraph (3) if reference is made to the currency in which the invoice was recorded in accordance with the value set by the concerned country. 3- The values which are used for any national currency and that is the equivalent to the value of that currency are denominated in Euro on the basis of its value on the first work day of October. Those values will be notified to the European Union Commission in a date that does not exceed 15 October. It shall be applicable as of the beginning of January of the following year. The European Union Commission shall notify all the concerned countries with the equivalent values and that in accordance with the provisions of the partnership agreements signed between the European Union and these countries. 4- Countries may approximate the equivalent value arising from the conversion from Euro to their national currencies by increasing or decreasing. The approximated

20 value must not differ from the values arising from the conversion by more than 5% (five percent). The country may keep its currency equivalent for the value in Euro without any amendment if conversion at the annual conversion date set in paragraph (3) for that value before realizing any approximation may lead to an increase that is less than 15% (fifteen percent) for the equivalent in the national currency. The equivalent may be kept in the national currency without any change if the conversion will lead to a decrease in the value of the equivalent. 5- The Ministers of Foreign Affairs Committee shall review the amounts denominated in Euro upon the request of the Member Country. When undertaking this revision, this Committee shall examine the possibility of keeping the effects of the limits with an actual relation. For that purpose it may decide to amend the amounts denominated in Euro. Chapter Six Administrative Cooperation Measures Article (31) Reciprocal Assistance 1- The custom authorities or competent governmental authorities in each Member Country shall provide the other party through the Ministers of Foreign Affairs Committee with specimens of the seals used in the customs offices and other custom authorities or competent governmental authorities to issue a Euro- Mediterranean Movement Certificate and also with the addresses of the authorities responsible for verifying the Euro-Mediterranean Movement Certificate and the Euro-Mediterranean Invoice Statement. 2- For the purpose of guaranteeing the correct implementation of this Protocol, each Member Country shall help the other country through the custom authorities or competent governmental authorities to verify the correctness of the Euro- Mediterranean Movement Certificate, the Euro-Mediterranean Invoice Statement and the correctness of the information stipulated in those documents. Article (32) Verifying the Origin Substantiation 1- The custom authorities or competent governmental authorities in the importing country shall selectively review, later, the origin substantiation when it has reasonable doubt in the correctness of these documents or the origin of certain products or the fulfillment of the requirements of this Protocol. 2- In order to implement the provisions of paragraph the custom authorities or competent governmental authorities in the importing country shall return the Euro-Mediterranean Movement Certificate and the invoice if same were submitted to it or the Euro-Mediterranean Invoice Statement, or a copy of these documents to the exporting country for the purpose of verifying the correctness of the origin, provided the reasons for the verification request are submitted. Any documents or

21 information that were obtained and that explain a possibility that the information provided in the origin substantiation were incorrect will also be sent in order to support the request to verify the correctness of the data. 3- The verification will be realized through the custom authorities or competent governmental authorities in the exporting country, and for this purpose, it has the right to request any evidence and to carry out any inspection on the accounts of the importer or any other review it deems appropriate. 4- If the custom authorities or competent governmental authorities in the importing countries decide to halt preferential treatment for the concerned products during the period of awaiting the results of the verification, then the importer will be offered to have the Products released in accordance with any precautionary measures it deems necessary. 5- The custom authorities or competent governmental authorities which requested the verification in the importing country shall be notified with the result of the verification process at the earliest time possible. The results of the verification must clearly show if the documents are correct and if the Products have an origin in the Member Country or in any of the countries referred to in Article (3) and fulfill the remaining requirements of this Protocol. 6- In cases were there is reasonable doubt and failure to receive a response within ten months as of the date of the verification request that is submitted to the exporting country, or if the response does not contain information sufficient to determine the correctness of the subject of the verification or the true origin of the Products, then the customs authorities or competent governmental authorities which requested the verification, apart from exceptional cases, shall refuse to grant preferential treatment for these Products. Article (33) Dispute Settlement Disputes that may arise in regard to the measures of Article (32) which cannot be settled between the custom authorities or competent governmental authorities which requested the verification and the custom authorities or competent governmental authorities that are responsible for realizing the verification shall be submitted to the Ministers of Foreign Affairs Committee. Questions regarding the explanation of this Protocol shall also be submitted to this Committee. In all cases disputes between the importer and the custom authorities or competent governmental authorities in the importing country shall be settled in the framework of the legislation of this country. Article (34) The Penalties