Decision No. 2/1999 Of The Joint Committee Of The Free Trade Agreement Between The Republic Of Latvia And The Slovak Republic On Amendments To The Protocol 3 .To The Free Trade Agreement Between The Republic Of Latvia And The Slovak Republic

THE JOINT COMMITTEE,

Having regard to the Free Trade Agreement between the Republic of Latvia, of the one part, and the Slovak Republic, of the other part, signed in Riga on 19 April 1996, and Protocol 3 to this agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation,

Having in mind provisions of Articles 38 of the Free Trade Agreement between the Republic of Latvia and the Slovak Republic,

Whereas within 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, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, Turkey, Iceland, Norway and Switzerland;

Whereas it would seem advisable to revise the Articles 21, 26 and 30 of this Protocol 3 concerning the amounts in order to fully take into consideration the entry into force of the euro;

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,

HAS 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 Party equivalent to the amounts expressed in euro shall be fixed by the exporting Party and communicated to the importing Party.

2. When the amounts exceed the corresponding amounts fixed by the importing Party, the latter shall accept them if the products are invoiced in the currency of the exporting Party. When the products are invoiced in the currency of another Party referred to in Article 4, the importing Party shall recognise the amount notified by the Party 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 a Party shall be reviewed by the Joint Committee at the request of a Party. 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 or - from materials not

cereal products (for example, corn classified within

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 an Manufacture:

alcoholic strength by volume of - from materials not classified

80% vol or higher; ethyl alcohol within heading Nos2207

and other spirits, denatured, of or 2208;

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 floor Manufacture from1:

57 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 of 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 the materials

that 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 and Manufacture in which

other porous-tipped pens and markers; all the materials used

fountain pens, stylograph pens and are classified within a

other pens; duplicating stylos; heading other than that

propelling or sliding pencils; of the product. However,

pen-holders, pencil-holders and nibs or nib-points classified

similar holders; parts (including within the same heading

caps and clips) of the foregoing may be used.

articles, other than those of heading No9609

Article 2

1. This Decision shall be approved in accordance with the internal legal requirements of both Parties and it shall enter into force on the date of exchange of diplomatic notes.

2. If this Decision cannot enter into force in accordance with the paragraph 1 of this Article before 1 January 2000, it shall be applied provisionally from that date until the internal legal requirements will be fulfilled.

IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorised thereto, have signed this Decision.

Done at Bratislava this 13th day of December, 1999 in two authentic copies in the English language.

For the Republic of Latvia For the Slovak Republic