Agreement Between The Republic Of Latvia And The Republic Of Hungary On Amendments To The Protocol 3 On Rules Of Origin To The Free Trade Agreement Between The Republic Of Latvia And The Republic Of Hungary
The Republic of Latvia (hereinafter called Latvia) and Republic of Hungary (hereinafter called Hungary),
Having regard to the Free Trade Agreement between the Republic of Latvia, of the one part, and the Republic of Hungary, of the other part, signed in Budapest on 10 June 1999,
Whereas 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, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, Turkey, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;
Whereas it would seem advisable to revise the Articles concerning the amounts in order to fully take into consideration the entry into force of the euro;
Whereas, to take 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. In Articles 21 and 26 the word "ECU" shall be replaced by "euro".
2. Article 30 shall be replaced by the following:
"Article 30
Amounts expressed in euro
1. Amounts in the national currency of the exporting country equivalent to the amounts expressed in euro shall be fixed by the exporting country and communicated to the importing country.
2. When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country. When the products are invoiced in the currency of another country referred to in Articles 3 and 4, the importing country shall recognise the amount notified by the country concerned.
3. The amounts to be used in any given national currency shall be the equivalent in that national currency of the amounts expressed in euro as at the first working day of October 1999.
4. The amounts expressed in euro and their equivalents in the national currencies of Latvia and Hungary shall be reviewed by the Joint Committee at the request of Latvia or Hungary. When carrying out this review, the Joint Committee shall ensure that there will be no decrease in the amounts to be used in 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. Annex II shall be amended as follows:
(a) | the entry for HS heading 1904 shall be replaced by: | ||||
1904 | Prepared foods obtained by the | Manufacture: | |||
swelling or roasting of cereal | - from materials not | ||||
or cereal products (for example, | classified within | ||||
corn flakes); cereals (other than maize | heading No1806; | ||||
(corn)) in grain form or in the | - in which all the cereals | ||||
form of flakes of other worked | and flour (except durum | ||||
grains (except flour and meal), | wheat and its derivatives | ||||
pre-cooked; or otherwise prepared, | and Zea indurata maize) | ||||
not elsewhere specified or included | used must be wholly obtained;1 | ||||
- in which the value of | |||||
any materials of Chapter | |||||
17 used does not exceed | |||||
30 % of the ex - works | |||||
price of the product | |||||
1 The exception concerning the Zea indurata maize is applicable until 31.12.2002. | |||||
(b) | the entry for HS heading 2207 shall be replaced by: | ||||
2207 | Undenatured ethyl alcohol of | Manufacture: | |||
an alcoholic strength by volume | - from materials not | ||||
of 80% vol or higher; ethyl | classified within heading | ||||
alcohol and other spirits, | Nos2207 or 2208; | ||||
denatured, of any strength | - in which all the grapes or | ||||
any material derived from | |||||
grapes used must be wholly | |||||
obtained or if all the other | |||||
materials used are already | |||||
originating, arrack may be | |||||
used up to a limit of 5% by | |||||
volume | |||||
(c) | the entry for HS Chapter 57 shall be replaced by: | ||||
Chapter | Carpets and other textile | Manufacture from1: | |||
57 | floor coverings: | - natural fibres or | |||
- Of needleloom felt | - chemical materials or | ||||
textile pulp | |||||
However: | |||||
- polypropylene filament | |||||
of heading No5402, or | |||||
- polypropylene fibres | |||||
of heading Nos5503 | |||||
or 5506, or | |||||
- polypropylene filament | |||||
tow of heading No5501, | |||||
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 from1: | ||||
- natural fibres not carded | |||||
or combed or otherwise | |||||
processed for spinning, or | |||||
- chemical materials or | |||||
textile pulp | |||||
- Of other textiles materials | Manufacture from1: | ||||
- coir or jute yarn, | |||||
- synthetic or artificial | |||||
filament yarn, | |||||
- natural fibres, or | |||||
- man-made staple fibres | |||||
not 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. | |||||
(d) the entry for HS heading 8401 shall be replaced by: | |||||
ex 8401 | Nuclear fuel elements | Manufacture in which | Manufacture | ||
all the materials used | in which the | ||||
are classified within a | value of all | ||||
heading other than that | the materials | ||||
of the product1 | does not | ||||
exceed 30% | |||||
of the | |||||
ex-works | |||||
price of the | |||||
final product | 1 This rule shall apply until 31 December 2005. | ||||
(e) the following shall be inserted between the entries for HS heading Nos 9606 and 9612: | |||||
9608 | Ball-point pens; felt-tipped | Manufacture in which all | |||
and other porous-tipped pens | the materials used are | ||||
and markers; fountain pens, | classified within a heading | ||||
stylograph pens and other pens; | other than that of the product. | ||||
duplicating stylos; propelling or | However, nibs or nib-points | ||||
sliding pencils; pen-holders, | classified within the same | ||||
pencil-holders and similar holders; | heading may be used | ||||
parts (including caps and clips) of | |||||
the foregoing articles, other than | |||||
those of heading No9609 |
Article 2
This Agreement shall enter into force on the date of entering into force of the Free Trade Agreement between the Republic of Latvia and the Republic of Hungary.
Done at Budapest this 10th day of December, 1999 in two authentic copies in the English language.
The Representative The Representative
of the Republic of Latvia of the Republic of Hungary