ADDITIONAL PROTOCOL to the Interim Agreement on trade and trade-related matters between the European Economic Community and the European Coal and Steel Community and the Czech and Slovak Republic Federal Republic

THE EUROPEAN ECONOMIC COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community`,

of the one part and,

THE CZECH REPUBLIC,

of the other part,

Whereas an Interim Agreement on trade and trade related matters between the European Economic Community and the European Coal and Steel Community of the one part and the Czech and Slovak Federal Republic of the other part, was signed in Brussels on 16 December 1991 (hereinafter called 'the Interim Agreement`), entered into force on 1 March 1992, and was amended by an exchange of letters signed on 15 December 1992;

Whereas the Czech Republic and the Slovak Republic have declared to the Community that, as successor States to the Czech and Slovak Republic they continue to assume all the obligations deriving from all agreements between the Czech and Slovak Federal Republic and the European Communities and, in particular, the Interim Agreement;

Recognizing the crucial importance of trade in the transition to a market economy;

BEARING IN MIND the willingness of the Community to accelerate its efforts to open up its markets;

HAVING REGARD to the Interim Agreement and in particular to Article 1 thereof,

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

THE EUROPEAN ECONOMIC COMMUNITY:

THE EUROPEAN COAL AND STEEL COMMUNITY:

THE CZECH REPUBLIC:

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

HAVE AGREED AS FOLLOWS:

Article 1

Article 3 (2), second subparagraph, of the Interim Agreement is replaced by the following text:

'Customs duties on imports applicable in the Community to products originating in the Czech or Slovak Republics listed in Annex II b shall be reduced, on the date of entry into force of this Agreement by 20 % of the basic duty and one year thereafter by a further 20 % of the basic duty. Duties shall be totally abolished by the end of the second year after the entry into force of the Agreement.`

Article 2

Article 3 (3) of the Interim Agreement is replaced by the following text:

'3. The products of Czech or Slovak origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditions defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned by the end of the third year after the date of entry into force of the Agreement.

At the same time customs duties on imports applicable to import quantities in excess of the quotas or ceilings provided for above shall be progessively dismantled from the entry into force of the Agreement by annual reductions of 15 %. By the end of the third year, remaining duties shall be abolished.`

Article 3

Footnote (3) of Annex III to the Interim Agreement is replaced by the following text:

'(3) These amounts will be increased:

- by 20 % at the entry into force of the Agreement,

- by a further 20 % on 1 January 1993,

- by a further 10 % on 1 July 1993,

- by a further 30 % on 1 January 1994.`

Article 4

1. The introductory paragraph of Annex XIII b to the Interim Agreement shall be replaced by the following text:

'The quantities imported under the CN codes referred to in this Annex, with the exception of codes 0104 and 0204, will be subject to levy and duty reductions of 20 % from 1 March 1992, 40 % from 1 January 1993 and 60 % from 1 July 1993.`

2. A second introductory paragraph shall be added to Annexes XI a and XIII b to the Interim Agreement as follows:

'The quantities in tonnes set out for year 3 shall be applicable from 1 July 1993 to 30 June 1994. The amounts imported prior to 1 July 1993 in excess of 50 % of the amount for year 2 shall be deducted from the amount applicable for year 3.

The quantities in tonnes set out for year 4 and year 5 respectively shall be applicable from 1 July 1994 to 30 June 1995 and from 1 July 1995 to 30 June 1996 respectively.`

Article 5

The last two indents of Article 2 (b) of Protocol 1 on textile and clothing products to the Interim Agreement are replaced by the following text:

'- at the start of the sixth year the remaining duties shall be eliminated.`

Article 6

Article 2, point 2, of Protocol 2 on ECSC products to the Interim Agreement is replaced by the following text:

'2. further reductions to 60, 40, 20 and 0 % of the basic duty shall be made at the beginning of the second, third, fourth and fifth years respectively after the entry into force of the Agreement.`

Article 7

This Protol shall form an integral part of the Interim Agreement.

Article 8

This Protocol shall enter into force on the first day of the month following the date upon which the Parties notify each other of the completion of the procedures necessary for that purpose. This Protocol shall apply from 1 July 1993 with the exception of Article 6.

Article 9

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

Done at Brussels on