Additional protocol

to the Agreement establishing an association between the European Economic Community and Malta

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part,

THE GOVERNMENT OF THE REPUBLIC OF MALTA,

of the other part,

HAVE DECIDED to extend the first stage of the Agreement establishing an association between the European Economic Community and Malta, signed in Valletta on 5 December 1970, and to this end have designated as their Plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Joseph VAN DER MEULEN,

Ambassador Extraordinary and Plenipotentiary,

Permanent Representative of Belgium,

Chairman of the Permanent Representatives Committee;

Roland de KERGORLAY,

Assistant Director General of the Directorate-General for External Relations of the Commission of the European Communities;

THE GOVERNMENT OF THE REPUBLIC OF MALTA:

Josef von FERENCZY,

Ambassador Extraordinary and Plenipotentiary of the Republic of Malta to the European Economic Community;

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

TITLE I

Trade

Article 1

1. The first stage of the Agreement establishing an association between the European Economic Community and Malta is hereby extended until 31 December 1980.

2. Negotiations are provided for during the twelve months preceding the expiry of the first stage, with a view to defining the content of the second stage.

Article 2

The provisions governing the first stage of the Agreement establishing an association between the European Economic Community and Malta, including those of the Protocol laying down certain provisions relating to the Agreement establishing an association between the European Economic Community and Malta, signed on 4 March 1976, shall be supplemented by the following provisions.

Article 3

1. Subject to the special provisions laid down in Article 5 of this Protocol, products originating in Malta, other than those appearing in Annex II to the Treaty establishing the European Economic Community, in Lists A and B of Annex I to the Agreement and in Article 4 of this Protocol, shall be exempt from payment of customs duty on entry into the Community.

2. Article 3 of Annex I to the Agreement shall be replaced by the following:

"Article 3

For the following goods obtained from the processing of agricultural products, the exemption referred to in Article 3 (1) of the Additional Protocol shall be applied to the fixed component of the charge levied on imports of those goods into the Community:

CCT heading No | Description |

18.06 | Chocolate and other food preparations containing cocoa |

19.03 | Macaroni, spaghetti and similar products |

19.08 | Pastry, biscuits, cakes and other fine bakers' wares, whether or not containing cocoa in any proportion" |

3. The products falling within the following tariff headings shall be added to List A of Annex I to the Agreement:

CCT heading No | Description |

22.06 | Vermouths, and other wines of fresh grapes flavoured with aromatic extracts |

22.09 | Spirits (other than those of heading No 22.08); liqueurs and other spirituous beverages; compound alcoholic preparations (known as "concentrated extracts") for the manufacture of beverages: B.Compound alcoholic preparations (known as "concentrated extracts") for the manufacture of beveragesC.Spirituous beverages |

4. Products falling within heading No 18.06 (chocolate and other food preparations containing cocoa) shall be deleted from List A of Annex I to the Agreement.

Products falling within heading No 55.09 (other woven fabrics of cotton) shall be deleted from List B of Annex I to the Agreement.

Article 4

The following products, originating in Malta, shall, on entry into the Community, be subject to the customs duty indicated in respect of each:

CCT heading No | Description | Rate of customs duty |

21.05 | Soups and broths, in liquid, solid or powder form; homogenized composite food preparations: | |

| A.Soups and broths, in liquid, solid or powder form | 5,4 % |

22.03 | Beer made from malt | 7,2 % |

Article 5

Article 2 of Annex I to the Agreement shall be replaced by the following:

"Article 2

1. For the following products, originating in Malta, the Community shall open annual Community tariff quotas for 1977 which shall be exempt from payment of customs duty within the limit of the quantities indicated below:

CCT heading No | Description | Annual Community tariff quota |

55.05 | Cotton yarn, not put up for retail sale | 1200 tonnes |

55.09 | Other woven fabrics of cotton | 100 tonnes |

56.04 | Man-made fibres (discontinuous or waste), carded, combed or otherwise prepared for spinning | 800 tonnes |

60.05 | Outer garments and other articles, knitted or crocheted, not elastic or rubberized | 216 tonnes |

61.01 | Men's and boys' outer garments | 815 tonnes |

2. If the date of the opening of the quotas referred to in paragraph 1 does not coin cide with the beginning of the calendar year, they shall be opened on a pro rata basis.

3. As from 1 January 1978, imports into the Community of the products referred to in paragraph 1 shall be subject to annual indicative ceilings, above which the customs duties applicable to third countries may be reintroduced in accordance with paragraphs 4 to 7. The amounts of the ceilings for 1978 shall be the amounts specified in paragraph 1 increased by 5 %. These ceilings shall be increased annually by 5 %.

4. If, over two consecutive years, imports of a product subject to ceilings are less than 90 % of the amount fixed, the Community shall suspend the application of those ceilings.

5. In the event of cyclical difficulties, the Community reserves the right, after consultation within the Association Council, to apply for any year the same amount as that fixed for the preceding year.

6. The Community shall notify the Association Council on 1 December of each year of the list of products subject to ceilings in the following year and of the amounts of the ceilings.

7. By way of derogation from Article 3 (1) of the Additional Protocol, when a ceiling fixed for the importation of a product covered by paragraph 1 is reached, Common Customs Tariff duties may be charged again on imports of the product in question until the end of the calendar year."

Article 6

For the products covered by Article 59 (1) (b) of the Act of Accession, Article 4 of the Protocol laying down certain provisions relating to the Agreement establishing an association between the European Economic Community and Malta shall remain applicable until 31 December 1977.

Article 7

For the following product, originating in Malta, the Community shall open, for the period 1 July 1977 to 30 June 1978, a Community tariff quota free of customs duties for the volume indicated:

CCT heading No | Description | Community tariff quota |

16.02 | Other prepared or preserved meat or meat offal: | |

B.Other: | |

III.Other: | |

b)Other: | |

1.Containing bovine meat or offal: | |

bb)Other | 650 tonnes |

Article 8

1. The customs duties and charges having equivalent effect applicable to products originating in the Community when imported into Malta shall be those actually applied in Malta on 1 July 1977.

2. Any changes made by Malta in the customs duties and charges having equivalent effect applied vis-à-vis third countries must not have the effect of diminishing the percentage preference enjoyed by the Community in relation to third countries.

Article 9

In the event of modifications to the nomenclature of the customs tariffs of the Contracting Parties affecting products referred to in the Agreement, the Association Council may adapt the tariff nomenclature of those products as it appears in the Agreement.

TITLE II

Rules of origin

Article 10

1. A derogation from the rules of origin contained in the Protocol concerning the definition of the concept of "originating products" and methods of administrative cooperation, annexed to the Protocol laying down certain provisions relating to the Agreement establishing an association between the European Economic Community and Malta, hereinafter called the Origin Protocol, shall be granted for the following products.

2. By way of derogation from the special provisions in Annex II to the Origin Protocol for heading No 16.02 to the effect that non-originating products from Chapter 2 must not be used, canned stewed steak manufactured in Malta shall be regarded as a product originating in Malta even though this condition is not observed, provided that the other conditions applicable to this heading are satisfied.

The following entry must be made in box 7 of movement certificates EUR.l, issued in respect of originating products pursuant to the derogation referred to in this paragraph:

"Derogation stewed steak".

This derogation shall apply until 30 June 1978.

3. By way of derogation from the special provisions in Annex II to the Origin Protocol for heading No 18.06 to the effect that non-originating products from Chapter 17 may not represent more than 30 % of the value of the finished product, chocolates manufac tured in Malta shall be regarded as products origi nating in Malta even though this condition is not observed, provided that the other conditions appli cable to this heading are satisfied.

The following entry must be made in box 7 of movement certificates EUR.l issued in respect of originating products pursuant to the derogation referred to in this paragraph :

"Derogation chocolates".

This derogation shall apply until 31 December 1978.

4. By way of derogation from the special provisions in Annex II to the Origin Protocol for heading No 85.15 to the effect that at least 50 % in value of the materials and parts used must be originating products, intermediate-frequency transformers manufactured in Malta shall be regarded as products originating in Malta even though this condition is not observed, provided that the other conditions relating to this heading are satisfied.

The following entry must be made in box 7 of movement certificates EUR.l issued in respect of originating products pursuant to the derogation referred to in this paragraph:

"Derogation IFT".

This derogation shall apply until 30 June 1978.

5. By way of derogation from the special provisions in Annex II to the Origin Protocol for heading No 85.15 to the effect that non-originating transistors may not represent more than 3 % of the value of the finished product, reception apparatus manufactured in Malta shall be regarded as a product originating in Malta even though this condition is not observed, provided that the other conditions relating to this heading are satisfied.

The following entry must be made in box 7 of movement certificates EUR.l issued in respect of originating products pursuant to the derogation referred to in this paragraph :

"Derogation radios".

This derogation shall apply until 30 June 1978.

6. By way of derogation from the special provisions in Annex II to the Origin Protocol for heading No 92.11 to the effect that non-originating transistors may not represent more than 3 % of the value of the finished product, tape recorders manufactured in Malta shall be regarded as products originating in Malta if the value of the non-originating transistor does not exceed 5 % of the value of the finished product, provided that the other conditions relating to this heading are satisfied.

The following entry must be made in box 7 of movement certificates EUR.l issued in respect of originating products pursuant to the derogation referred to in this paragraph:

"Derogation tape recorders".

This derogation shall apply until 30 June 1978.

TITLE III

General and final provisions

Article 11

This Protocol forms an integral part of the Agreement establishing an association between the European Economic Community and Malta.

Article 12

1. This Protocol shall be subject to ratification, acceptance or approval, in accordance with the procedures of the Contracting Parties, who shall notify each other of the completion of the procedures necessary to that end.

2. This Protocol shall enter into force on the first day of the second month following the month in which the notifications referred to in paragraph 1 have been effected.

Article 13

This Protocol is drawn up in two copies in the Danish, Dutch, English, French, German and Italian languages, each of these texts being equally authentic.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne protokol.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Protokoll gesetzt.

In witness whereof, the undersigned Plenipotentiaries have affixed their signatures below this Protocol.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent protocole.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente protocollo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder dit Protocol hebben gesteld.

Udfærdiget i Bruxelles, den syvogtyvende oktober nitten hundrede og syvoghalvfjerds.

Geschehen zu Brüssel am siebenundzwanzigsten Oktober neunzehnhundertsiebenundsiebzig.

Done at Brussels on the twenty-seventh day of October in the year one thousand nine hundred and seventy-seven.

Fait à Bruxelles, le vingt-sept octobre mil neuf cent soixante-dix-sept.

Fatto a Bruxelles, addì ventisette ottobre millenovecentosettantasette.

Gedaan te Brussel, de zevenentwingtigste oktober negentienhonderd zevenenzeventig.

På Rådet for De europæiske Fællesskabers vegne

Für den Rat der Europäischen Gemeinschaften

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Communità europee

Voor de Raad van de Europese Gemeenschappen

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For republikken Maltas regering

Für die Regierung der Republik Malta

For the Governement of the Republic of Malta

Pour le gouvernement de la république de Malte

Per il governo della Repubblica di Malta

Voor de Regering van de Republiek Malta

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