PROTOCOL

to the Third ACP-EEC Convention consequent on the Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities

HIS MAJESTY THE KING OF THE BELGIANS,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE HELLENIC REPUBLIC,

HIS MAJESTY THE KING OF SPAIN,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

THE PRESIDENT OF THE PORTUGUESE REPUBLIC,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

whose States are Contracting Parties to the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Economic Community, and

THE COUNCIL AND THE COMMISSION OF THE EUROPEAN COMMUNITIES,

of the one part, and

THE HEADS OF THE ACP STATES,

whose States are hereinafter referred to as 'ACP States',

of the other part,

HAVING REGARD to the Third ACP-EEC Convention, signed at Lomé on 8 December 1984, and in particular Article 284 thereof,

WHEREAS the Kingdom of Spain and the Portuguese Republic acceded to the European Communities on

1 January 1986,

WHEREAS the requisite adjustments should therefore be made to the Convention and whereas the transitional measures to be applied to trade between the new acceding States and ACP States should be fixed,

WHEREAS it is agreed that the scope of these measures shall be confined to the period of validity of the Convention, including those transitional measures which may be adopted upon expiry of that Convention,

HAVE DECIDED to conclude this Protocol and to this end have designated as their Plenipotentiaries:

HIS MAJESTY THE KING OF THE BELGIANS:

HER MAJESTY THE QUEEN OF DENMARK:

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:

THE PRESIDENT OF THE HELLENIC REPUBLIC:

HIS MAJESTY THE KING OF SPAIN:

THE PRESIDENT OF THE FRENCH REPUBLIC:

THE PRESIDENT OF IRELAND:

THE PRESIDENT OF THE ITALIAN REPUBLIC:

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:

HER MAJESTY THE QUEEN OF THE NETHERLANDS:

THE PRESIDENT OF THE PORTUGUESE REPUBLIC:

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:

THE COUNCIL AND THE COMMISSION OF THE EUROPEAN COMMUNITIES:

THE HEADS OF THE ACP STATES:

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

HAVE AGREED AS FOLLOWS:

Article 1

The Kingdom of Spain and the Portuguese Republic shall become Contracting Parties to the Convention and to the Declarations annexed to the Final Act signed at Lomé on 8 December 1984.

TITLE I

ADJUSTMENTS

Article 2

The texts of the Convention, including the Annexes and Protocols which form an integral part thereof, as well as the Declarations annexed to the Final Act, drawn up in Portuguese and Spanish, shall be authentic in the same conditions as the original texts.

Article 3

1. The minimum quantity indicated in the second subparagraph of Article 2 (a) of Protocol 5 on Rum shall be increased to 172 000 hectolitres of pure alcohol.

2. The quotas and ceilings mentioned in point 8 of Annex XIII to the Final Act shall be increased to the following levels for the products indicated below:

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Article 4

1. Subject to the special provisions of paragraph 2, the customs duties applicable to imports into the Community of the products listed below originating in the ACP States shall, within the limit of the ceilings indicated, be reduced as follows:

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2. Duties shall be gradually dismantled, as indicated in paragraph 1, over the same periods and in accordance with the same timetables as those laid down in the Act of Accession of Spain and Portugal for like products imported from those countries into the Community as constituted on 31 December 1985.

During this dismantling period and where customs duties applied to imports into the Community, as constituted on 31 December 1985, of products from Spain and Portugal are different for the two countries, the higher customs duty of the two shall be applied to products originating in the ACP States.

Article 5

The following products shall be subject, on import into the Community, to the following customs duties:

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TITLE II

TRANSITIONAL MEASURES

CHAPTER I

PROVISIONS APPLICABLE TO THE KINGDOM OF SPAIN

Section I

General arrangements

Article 6

1. The Kingdom of Spain shall apply to imports of products originating in the ACP States, other than those listed in Annex I, the same customs duties as it applies to

like products from the Community as constituted on

31 December 1985.

2. The Kingdom of Spain shall gradually dismantle customs duties on imports originating in the ACP States in accordance with the following timetable:

- on 1 March 1986 each duty shall be reduced to 90 % of the basic duty;

- on 1 January 1987 each duty shall be reduced to 77,5 % of the basic duty;

- on 1 January 1988 each duty shall be reduced to 62,5 % of the basic duty;

- on 1 January 1989 each duty shall be reduced to 47,5 % of the basic duty;

- on 1 January 1990 each duty shall be reduced to 35 % of the basic duty;

- on 1 January 1991 each duty shall be reduced to 22,5 % of the basic duty;

- on 1 January 1992 each duty shall be reduced to 10 % of the basic duty;

- the final 10 % reduction shall be made on 1 January 1993.

3. For the purposes of applying the duties calculated in accordance with paragraph 2 they shall be rounded down to one decimal place, by deleting the second decimal place.

Article 7

1. The basic duty for each product to which the successive reductions provided for in Article 6 (2) shall be applied shall be the duty actually applied by the Kingdom of Spain vis-à-vis the Community on 1 January 1985.

2. By way of derogation from paragraph 1:in the case of products listed in Annex I, the basic duty shall be the duty applied by the Kingdom of Spain vis-à-vis the ACP States on 1 January 1985;in the case of the following products the basic duties shall be those indicated:

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Article 8

Should the Kingdom of Spain suspend customs duties on imports from the Community as constituted on 31 December 1985 or reduce them more rapidly than envisaged under the timetable laid down, it shall also suspend or reduce by the same percentage the customs duties applying to like products originating in the ACP States, other than products listed in Annex I.

Article 9

1. The Kingdom of Spain shall apply quantitative import restrictions:

- until 31 December 1988 for the products listed in

Annex II,

- until 31 December 1989 for the products listed in

Annex III.

Until 31 December 1989 the Kingdom of Spain may also apply quantitative import restrictions to products listed in Annex IV, provided it applies similar measures vis-à-vis non-preferential third countries.

2. The restrictions referred to in paragraph 1 shall take the form of global quotas open to all ACP States.

3. The initial quotas are indicated in Annex II, Annex III or Annex IV, as appropriate.

The quotas listed in Annexes II and IV and quotas 1 to 5 and 10 to 14 in Annex III shall be gradually increased at the beginning of each year by 25 % in the case of value quotas and 20 % in the case of volume quotas. Each successive increase shall be added to the quota and the following increase calculated on the basis of the total thus obtained.

Quotas 6 to 9 in Annex III shall be increased by:

- 13 % on 1 January 1986,

- 18 % on 1 January 1987,

- 20 % on 1 January 1988,

- 20 % on 1 January 1989.

4. Where it is found that Spanish imports of a product listed in Annex II, Annex III or Annex IV have been less than 90 % of the quota level in two consecutive years, imports of that product originating in the ACP States shall be liberalized at the beginning of the year following the two years in question provided the product concerned is at that time liberalized vis-à-vis the Community as constituted on

31 December 1985.

Should the Kingdom of Spain liberalize imports from the Community as constituted on 31 December 1985 of a product listed in Annex II or Annex III, or increase a quota applicable to the Community as constituted on 31 December 1985 by more than the minimum percentage indicated in paragraph 3, it shall also liberalize imports of that product from the ACP States, or increase the global quota proportionately.

5. The Kingdom of Spain shall administer the quotas referred to in paragraph 2 in accordance with the same rules and administrative practices it applies to imports of products originating in the Community as constituted on 31 December 1985.

Article 10

For products covered by Regulation (EEC) N° 3033/80 and originating in the ACP States, the Kingdom of Spain:

- as from 1 March 1986, shall dismantle the customs duty constituting the fixed component of the charge in accordance with the timetable indicated in Article 6 (2), starting from the basic duty indicated in Annex V,

- in respect of the variable component of the charge, shall immediately apply the preferential rates provided for in the Convention.

Section II

Products listed in Annex II to the Treaty establishing the European Economic Community

Article 11

1. For products listed in Annex II to the Treaty establishing the European Economic Community, subject to the special provisions laid down below, the Kingdom of Spain shall apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986 the difference shall be reduced to 87,5 % of the initial difference,

- on 1 January 1987 the difference shall be reduced to 75,0 % of the initial difference,

- on 1 January 1988 the difference shall be reduced to 62,5 % of the initial difference,

- on 1 January 1989 the difference shall be reduced to 50,0 % of the initial difference,

- on 1 January 1990 the difference shall be reduced to 37,5 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 25,0 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 12,5 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full as from 1 January 1993.

However, the following products originating in the ACP States may be imported into Spain duty-free with immediate effect:

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Kunde: 39355 Montan L 172 England

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2. For products falling within Regulation (EEC)

N° 805/68, customs duty shall be gradually aligned on preferential rates in eight steps of 12,5 % at the start of each of the eight marketing years following the accession of the Kingdom of Spain to the European Communities.

3. The Kingdom of Spain shall postpone implementation of the preferential arrangements for olive oil, oil seeds and oleaginous fruit falling within Regulation 136/66/EEC,

and for products derived therefrom, until 31 December 1990.

As from 1 January 1991, the Kingdom of Spain shall apply to these products a duty which reduces the difference between the duty actually applied on 31 December 1990 and the preferential duty in accordance with the following timetable:

- on 1 January 1991 the difference shall be reduced to 83,3 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 66,6 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 49,9 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 33,2 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 16,5 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full as from 1 January 1996.

4. The Kingdom of Spain shall postpone implementation of the preferential arrangements for fruit and vegetables falling within Regulation (EEC) N° 1035/72 until

31 December 1989.

As from 1 January 1990, the Kingdom of Spain shall apply to these products a duty which reduces the difference between the duty actually applied on 31 December 1989 and the preferential duty in accordance with the following timetable:

- on 1 January 1990 the difference shall be reduced to 85,7 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 71,4 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 57,1 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 42,8 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 28,5 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 14,2 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full as from 1 January 1996.

5. The Kingdom of Spain shall apply to fishery products falling within heading N° or subheading 03.01, 03.02,

03.03, 05.15 A, 16.04, 16.05 and 23.01 B of the Common Customs Tariff a duty which reduces the difference between the basic duty and the preferential duty in accordance with the timetable laid down in paragraph 1.

However, for prepared or preserved sardines falling within subheading 16.04 D of the Common Customs Tariff, the Kingdom of Spain shall apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986 the difference shall be reduced to 90,9 % of the initial difference,

- on 1 January 1987 the difference shall be reduced to 81,8 % of the initial difference,

- on 1 January 1988 the difference shall be reduced to 72,7 % of the initial difference,

- on 1 January 1989 the difference shall be reduced to 63,6 % of the initial difference,

- on 1 January 1990 the difference shall be reduced to 54,5 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 45,4 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 36,3 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 27,2 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 18,1 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 9,0 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full as from 1 January 1996.

6. For the purposes of paragraphs 1 and 5, the basic duty shall be that defined in Article 7 (1). However, the basic duty for domestic rabbits falling within subheading 01.06 A of the Common Customs Tariff shall be 6,5 %.

Article 12

The Kingdom of Spain shall apply with immediate effect the non-tariff benefits, and in particular the levy reductions, accorded by the Community to products originating in the ACP States.

Article 13

1. The Kingdom of Spain may apply quantitative restrictions to imports of products originating in the ACP States:

(a) until 31 December 1989 in respect of the products listed in Annex VI;

(b) until 31 December 1995 in respect of the products listed in Annex VII;

(c) in respect of products subject under Article 81 of the Act of Accession to the supplementary mechanism applicable to imports into Spain from the Community as constituted on 31 December 1985, other than products falling within Regulation (EEC) N° 1035/72.

2. Until 31 December 1990 the Kingdom of Spain shall apply quantitative restrictions to imports of products originating in the ACP States and referred to:

- in Article 1 (2) (a) of Regulation 136/66/EEC other than soya beans falling within subheading ex 12.01 B of the Common Customs Tariff,

- in Article 1 (2) (b) of Regulation N° 136/66/EEC other than products falling within subheadings 15.17 B II and 23.04 B of the Common Customs Tariff.

3. Until 31 December 1992 the Kingdom of Spain may retain quantitative restrictions on imports of products listed in Annex VIII originating in the ACP States.

4. The restrictions laid down in paragraphs 1 and 3 shall take the form of global quotas open to all third countries. Should, however, use of these quotas by other third countries prevent the ACP States from benefiting from them, the Community may, at the reasoned request of the latter, provide for special quotas within the global quotas.

Article 14

1. In the case of products originating in the ACP States which are not subject on 1 March 1986 to a common organization of the market, the provisions of Articles 130 (1) and 131 (1) of the Convention concerning the elimination of charges having equivalent effect to customs duties and the abolition of quantitative restrictions and measures having equivalent effect shall not apply to such charges, restrictions or measures where they form an integral part of a national organization of the market in Spain at the time of accession.

These provisions shall apply only until a common organization of the market is established for such products or until 31 December 1995, whichever is the earlier, and only in so far as is strictly necessary to ensure the functioning of the national organization.

2. By way of derogation from paragraph 1, the Kingdom of Spain may retain quantitative restrictions on imports of

bananas originating in the ACP States and falling within subheading 08.01 B of the Common Customs Tariff until a common organization of the market is established for such products.

Section III

Canary Islands and Ceuta and Melilla

Article 15

1. Without prejudice to the following provisions, the arrangements for trade between the Canary Islands and Ceuta and Melilla on the one hand and the ACP States on the other shall be the same as those for trade between the Community and the ACP States, provided the ACP States accord products originating in the Canary Islands and Ceuta and Melilla the same treatment they accord those from the Community.

2. Customs duties existing in the Canary Islands and Ceuta and Melilla with regard to products other than those listed in Annex II to the Treaty establishing the European Economic Community and the charge known as 'arbitrio insular - tarifa general' existing in the Canary Islands shall be dismantled in respect of products originating in the ACP States and in accordance with the timetable and arrangements indicated in Articles 6, 7 and 8.

3. Customs duties existing in the Canary Islands and Ceuta and Melilla with regard to products listed in Annex II to the Treaty establishing the European Economic Community and originating in the ACP States shall be aligned progressively on the preferential duties applied by the Community in respect of such products, subject to the proviso that those territories may accord more favourable treatment to such products than the Community does.

In no case shall duties be dismantled at a faster rate or otherwise than is laid down in Articles 6, 7 and 8.

4. The charge known as 'arbitrio insular - tarifa especial' in the Canary Islands shall be abolished with immediate effect in respect of products originating in the ACP States.

However, the said charge may be retained in respect of imports of the products listed in Annex IX at 90 % of the rate therein indicated, provided the lower rate is applied uniformly to all imports of the products in question originating in all the ACP States. The charge shall be abolished when it is abolished vis-à-vis the Community.

The said charge may at no time be higher than the Spanish customs tariff as amended with a view to the phasing-in of the Common Customs Tariff.

Section IV

Products falling within the Treaty establishing the European Coal and Steel Community

Article 16

1. The Kingdom of Spain shall apply to products falling within the Treaty establishing the European Coal and Steel Community and originating in the ACP States the same customs duties as it applies to like products from the Community as constituted on 31 December 1985.

2. The Kingdom of Spain shall gradually dismantle customs duties on imports of the products mentioned in paragraph 1 and originating in the ACP States in accordance with the timetable laid down in Article 6 (2) starting from the basic duty as defined in Article 7 (1).

CHAPTER II

PROVISIONS APPLICABLE TO THE PORTUGUESE REPUBLIC

Section I

General arrangements

Article 17

1. The Portuguese Republic shall abolish customs duties on imports of products originating in the ACP States with immediate effect.

2. By way of derogation from paragraph 1, the Portuguese Republic shall gradually dismantle customs

duties on imports originating in the ACP States of the products listed in Annex X in accordance with the following timetable:

- on 1 March 1986 each duty shall be reduced to 90 % of the basic duty,

- on 1 January 1987 each duty shall be reduced to 80 % of the basic duty,

- on 1 January 1988 each duty shall be reduced to 65 % of the basic duty,

- on 1 January 1989 each duty shall be reduced to 50 % of the basic duty,

- on 1 January 1990 each duty shall be reduced to 40 % of the basic duty,

- on 1 January 1991 each duty shall be reduced to 30 % of the basic duty,

- the final two 15 % reductions shall be made on 1 January 1992 and 1 January 1993.

3. For the purpose of applying the duties calculated in accordance with paragraph 2 they shall be rounded down to one decimal place, by deleting the second decimal place.

Article 18

1. The basic duty for each product to which the successive reductions provided for in Article 17 (2) shall be applied shall be the duty actually applied by the Portuguese Republic vis-à-vis the ACP States on 1 January 1985.

2. By way of derogation from paragraph 1, the Portuguese Republic shall dismantle customs duties on the products listed below starting from the duties which had actually applied vis-à-vis the Community on 1 January 1985:

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3. By way of derogation from paragraph 1, the Portuguese Republic shall dismantle customs duties on the products listed in Annex XI starting from the basic duties indicated in that Annex for each product, provided the said duties are higher than the duties actually applied by the Portuguese Republic vis-à-vis the ACP States on 1 January 1985.

Article 19

Should the Portuguese Republic suspend customs duties on imports from the Community as constituted on 31 December 1985 or reduce them more rapidly than envisaged in the timetable laid down, it shall also suspend or reduce by the same percentage the customs duties applying to like products originating in the ACP States, other than products listed in Annex X Section B.

Article 20

1. Charges having equivalent effect to customs duties applied by the Portuguese Republic to imports originating in the ACP States shall be abolished.

2. The following charges applied by the Portuguese Republic to trade with the ACP States shall be gradually dismantled in accordance with the timetable indicated:

(a) the 0,4 % ad valorem charge applied:

- to goods imported temporarily,

- to reimported goods (other than containers),

- to goods imported under inward processing arrangements allowing drawback of duties paid on the import goods following export of the products obtained,

shall be:

- reduced to 0,2 % on 1 January 1987 and

- abolished on 1 January 1988;

(b) the 0,9 % ad valorem charge applied to goods imported for home use shall be:

- reduced to 0,6 % on 1 January 1989,

- reduced to 0,3 % on 1 January 1990, and

- abolished on 1 January 1991.

Article 21

1. The Portuguese Republic shall, with immediate effect, abolish customs duties of a fiscal nature or the fiscal component of customs duties existing at that date on imports from the ACP States.

2. In the case of the products listed in Annex XII, the customs duties of a fiscal nature or fiscal component of customs duties applied by the Portuguese Republic shall be eliminated in accordance with the timetable laid down in Article 17 (2).

3. Should the Portuguese Republic exercise the option open to it under Article 196 (3) of the Act of Accession of replacing a customs duty of a fiscal nature or fiscal component of such a duty by an internal charge, such component as is not covered by that charge shall represent the basic duty to which the successive reductions shall be applied. That component shall be dismantled in trade with the ACP States in accordance with the timetable laid down in Article 17 (2).

Article 22

Until 31 December 1987 the Portuguese Republic shall retain quantitative restrictions on imports from the ACP States of motor vehicles subject to the special arrangements agreed between the Community and the Portuguese Republic in accordance with Protocol 18 to the Act of Accession.

Article 23

For the products covered by Regulation (EEC) N° 3033/80 and originating in the ACP States, the Portuguese Republic:

- shall gradually dismantle the customs duty constituting the fixed component of the charge in accordance with the timetable indicated in Article 17 (2), starting from the basic duty indicated in Annex XIII,

- in respect of the variable component of the charge, shall apply the preferential rates provided for in the Convention as from the date in the first year of the second stage of the transitional arrangements on which the second-stage rules come into force in respect of the commodities whose marketing year starts the latest.

Section II

Products listed in Annex II to the Treaty establishing the European Economic Community

Article 24

1. For products listed in Annex II to the Treaty establishing the European Economic Community, starting on 1 March 1986 and subject to the special provisions laid down below, the Portuguese Republic shall apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986 the difference shall be reduced to 90,9 % of the initial difference,

- on 1 January 1987 the difference shall be reduced to 81,8 % of the initial difference,

- on 1 January 1988 the difference shall be reduced to 72,7 % of the initial difference,

- on 1 January 1989 the difference shall be reduced to 63,6 % of the initial difference,

- on 1 January 1990 the difference shall be reduced to 54,5 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 45,4 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 36,3 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 27,2 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 18,1 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 9,0 % of the initial difference.

The Portuguese Republic shall apply the preferential rates in full as from 1 January 1996.

2. For the products listed in Annex XIV, the Portuguese Republic shall apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986 the difference shall be reduced to 87,5 % of the initial difference,

- on 1 January 1987 the difference shall be reduced to 75,0 % of the initial difference,

- on 1 January 1988 the difference shall be reduced to 62,5 % of the initial difference,

- on 1 January 1989 the difference shall be reduced to 50,0 % of the initial difference,

- on 1 January 1990 the difference shall be reduced to 37,5 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 25,0 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 12,5 % of the initial difference.

The Portuguese Republic shall apply the preferential rates in full as from 1 January 1993.

3. The following products originating in the ACP States may be imported into Portugal duty-free with immediate effect:

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4. The Portuguese Republic shall postpone implementation of the preferential arrangements for olive oil, oil seeds and oleaginous fruits falling within Regulation N° 136/66/EEC, and for products derived therefrom, until 31 December 1990.

From 1 January 1991 the Portuguese Republic shall apply a duty which reduces the difference between the duty actually in force on 31 December 1990 and the preferential duty in accordance with the following timetable:

- on 1 January 1991 the difference shall be reduced to 83,3 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 66,6 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 49,9 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 33,2 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 16,5 % of the initial difference.

The Portuguese Republic shall apply preferential rates in full as from 1 January 1996.

5. The Portuguese Republic shall postpone implementation of the preferential arrangements for products covered by the following Regulations until the beginning of the second stage as defined in Article 260 of the Act of Accession:

- Regulation (EEC) N° 804/68 on the common organization of the market in milk and milk products,

- Regulation (EEC) N° 805/68 on the common organization of the market in beef and veal,

- Regulation (EEC) N° 1035/72 on the common organization of the market in fruit and vegetables,

- Regulation (EEC) N° 2727/75 on the common organization of the market in cereals,

- Regulation (EEC) N° 2759/75 on the common organization of the market in pigmeat,

- Regulation (EEC) N° 2771/75 on the common organization of the market in eggs,

- Regulation (EEC) N° 2777/75 on the common organization of the market in poultrymeat,

- Regulation (EEC) N° 1418/76 on the common organization of the market in rice,

- Regulation (EEC) N° 822/87 on the common organization of the market in wine.

Glucose and lactose falling within Regulation (EEC)

N° 2730/75 and ovalbumin falling within Regulation (EEC)

N° 2783/75 shall be subject to the transitional arrangements applying to the corresponding agricultural products.

From the beginning of the second stage the Portuguese Republic shall apply a duty which reduces the difference between the duty actually applied at the end of the first stage and the preferential duty in accordance with the following timetable:

ii(i) where the second stage lasts for five years:

- on 1 January 1991 the difference shall be reduced to 83,3 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 66,6 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 49,9 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 33,2 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 16,5 % of the initial difference;

I(ii) where the second stage lasts for seven years:

- on 1 January 1989 the difference shall be reduced to 87,5 % of the initial difference,

- on 1 January 1990 the difference shall be reduced to 75 % of the initial difference,

- on 1 January 1991 the difference shall be reduced to 62,5 % of the initial difference,

- on 1 January 1992 the difference shall be reduced to 50 % of the initial difference,

- on 1 January 1993 the difference shall be reduced to 37,5 % of the initial difference,

- on 1 January 1994 the difference shall be reduced to 25 % of the initial difference,

- on 1 January 1995 the difference shall be reduced to 12,5 % of the initial difference;

(iii) The Portuguese Republic shall apply the preferential rates in full as from 1 January 1996.

6. The Portuguese Republic shall apply to fishery products falling within heading Nos or subheadings 03.01, 03.02, 03.03, 05.15 A, 16.04, 16.05 und 23.01 B of the Common Customs Tariff, a duty which reduces the difference between the basic duty and the preferential duty in accordance with the timetable laid down in paragraph 2.

However, for prepared or preserved sardines falling within subheading 16.04 D of the Common Customs Tariff, starting on 1 March 1986 the Portuguese Republic shall apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the timetable laid down in paragraph 1.

7. For the purposes of paragraphs 1 and 6 the basic duty shall be that defined in Article 18 (1).

Article 25

1. For the products originating in the ACP States the Portuguese Republic shall apply with immediate effect the arrangements resulting from the Convention as regards non-tariff benefits and more specifically levy reductions.

2. By way of derogation from paragraph 1, the Portuguese Republic shall postpone application of the above arrangements in respect of the products referred to in Article 24 (5) until the start of the second stage as defined in Article 260 of the Act of Accession.

Article 26

1. Until 31 December 1992 the Portuguese Republic may apply quantitative restrictions to imports of the products listed in Annex XV originating in the ACP States.

2. Until 31 December 1995, the Portuguese Republic may retain quantitative restrictions for imports of the products listed in Annex XVI and originating in the ACP States.

3. Until 31 December 1990 the Portuguese Republic shall apply quantitative restrictions to imports originating in the ACP States of oil seeds, oleaginous fruits, flour from which the oil has not been extracted and all vegetable oils other than olive oil.

4. Until 31 December 1992 the Portuguese Republic may retain quantitative restrictions for the products listed in Annex XVII and originating in the ACP States.

5. The restrictions laid down in paragraphs 1, 2 and 4 shall take the form of global quotas open to all third countries. Should, however, use of these quotas by other third countries prevent the ACP States from benefiting from them, the Community may, at the reasoned request of the latter, provide for special quotas within the global quotas.

Article 27

In the case of products originating in the ACP States which are not subject on 1 March 1986 to a common organization of the market, the provisions of Articles 130 (1) and 131 (1) of the Convention concerning the elimination of charges having equivalent effect to customs duties and the abolition of quantitative restrictions and measures having equivalent effect shall not apply to such charges, restrictions or measures where they form an integral part of a national organization of the market in Portugal at the time of accession.

These provisions shall apply only until a common organization of the market is established for such products or until 31 December 1995, whichever is the earlier, and only insofar as is strictly necessary to ensure the functioning of the national organization.

Section III

Products falling within the Treaty establishing the European Coal and Steel Community

Article 28

1. The Portuguese Republic shall, with immediate effect, abolish customs duties on imports originating in the ACP States of products falling within the European Coal and Steel Community.

2. By way of derogation from paragraph 1, the Portuguese Republic shall gradually dismantle customs duties on imports of the following products in accordance with the timetable set out in Article 17 (2):

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Article 29

1. The basic duty for each product, to which the successive reductions provided for in Article 28 (2) shall be applied, will be the duty actually applied by the Portuguese Republic vis-à-vis the ACP States on 1 January 1985.

2. By way of derogation from paragraph 1, the Portuguese Republic shall dismantle customs duties on products falling within subheading ex 73.13 B IV ex d) of the

Common Customs Tariff starting from a basic duty of 20 %, provided the said duties are higher than the duties referred to in paragraph 1.

Article 30

Fiscal duties and charges having equivalent effect to customs duties applied by the Portuguese Republic to imports of the products listed in Article 28 (1) and originating in the ACP States shall be abolished in accordance with the provisions of Article 20.

TITLE III

GENERAL AND FINAL PROVISIONS

Article 31

The Customs Cooperation Committee specified in Article 28 of Protocol 1 to the Convention may

make such adjustments to the rules of origin as are necessitated by the accession of the Kingdom of Spain and the Portuguese Republic to the European Communities.

Article 32

The Annexes to this Protocol shall form an integral part thereof. This Protocol shall form an integral part of the Convention.

Article 33

This Protocol shall be approved by the Contracting Parties in accordance with their own procedures. It shall come into force on the first day of the second month following notification of the completion of the procedures by the Contracting Parties.

Article 34

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish languages, each of those texts being equally authentic.

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ANNEX I

List provided for in Article 6 (1)

>TABLE>

ANNEX II

List provided for in Article 9 (1), second indent

>TABLE>

ANNEX III

List provided for in Article 9 (1), second indent

>TABLE>

ANNEX IV

List provided for in Article 9 (2), second indent

>TABLE>

ANNEXE V

List provided for in Article 10

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ANNEX VI

List provided for in Article 13 (1) (a)

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ANNEX VII

List provided for in Article 13 (1) (b)

>TABLE>

ANNEX IX

List provided for in Article 15 (4)

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ANNEX X List provided for in Article 17 (2)

A. Sensitive products vis-à-vis the Community, as presently constituted

>TABLE>

B. Products considered sensitive vis-a-vis ACP States

>TABLE>

ANNEX XI

List provided for in Article 18 (3)

>TABLE>

ANNEX XII

List provided for in Article 21 (2)

>TABLE>

ANNEX XIII

List provided for in Article 23

>TABLE>

ANNEX XIV

List provided for in Article 24 (2)

>TABLE>

ANNEX XV

List provided for in Article 26 (1)

>TABLE>

ANNEX XVI

List provided for in Article 26 (2)

>TABLE>

ANNEX XVII

List provided for in Article 26 (4)

>TABLE>

ANNEX XVIII

JOINT DECLARATION on the transitional measures applicable to imports into Spain and Portugal of products originating in the ACP States

The Contracting Parties agree that the transitional measures applicable to imports into Spain and Portugal of products originating in the ACP States as fixed by the Protocol to the Third ACP-EEC Convention consequent on the Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities will, during the periods laid down by that Protocol, also apply within the framework of any Convention that may replace this Convention.

ANNEX XIX

COMMUNITY DECLARATION on rice and sugar

The Community agrees to continue with the ACP States, under the appropriate provisions of the Convention and in particular Article 130 (2) (c), the examination of requests made by the ACP States as regards rice and sugar.

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