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 Republic of Bulgaria, of the other part

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

of the one part,

and THE REPUBLIC OF BULGARIA, hereinafter referred to as 'Bulgaria`,

of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States and Bulgaria was signed in Brussels on 8 March 1993;

WHEREAS the aim of the Europe Agreement is to provide an appropriate framework for political dialogue; whereas it is to govern commercial and economic relations between the Parties and includes provisions relating to financial cooperation and assistance and the promotion of cooperation in cultural matters;

WHEREAS the Europe Agreement is intended to establish close and long-lasting relations, based on mutual interest and reciprocity, which would allow Bulgaria to take part in the process of European integration;

WHEREAS it is necessary to ensure the development of trade links by strengthening and widening the relations established in the past, notably by the Agreement on trade and commercial and economic cooperation, signed on 8 May 1990;

WHEREAS to this end it is necessary to implement as speedily as possible, by means of an Interim Agreement, provisions of the Europe Agreement on trade and trade-related matters;

WHEREAS it is necessary to ensure that pending the entry into force of the Europe Agreement and the establishment of the Association Council, the Joint Committee set up by the Agreement on trade and commercial and economic cooperation can exercise the powers assigned by the Europe Agreement to the Association Council which are necessary in order to implement the Interim Agreement;

HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries,

THE EUROPEAN ECONOMIC COMMUNITY:

Niels HELVEG PETERSEN,

Minister for Foreign Affairs of the Kingdom of Denmark,

President-in-Office of the Council of the European Communities;

THE EUROPEAN COAL AND STEEL COMMUNITY:

Sir Leon BRITTAN,

Member of the Commission of the European Communities;

Hans VAN DEN BROEK,

Member of the Commission of the European Communities;

THE REPUBLIC OF BULGARIA:

Valentin KARABACHEV,

Deputy Prime Minister and Minister for Trade;

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

HAVE AGREED AS FOLLOWS:

TITLE I GENERAL PRINCIPLES

Article 1

(Europe Agreement (EA) 6)

Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a New Europe inspires the domestic and external policies of the Parties and constitutes an essential element of this Agreement.

TITLE II FREE MOVEMENT OF GOODS

Article 2 (EA 8)

1. The Community and Bulgaria shall gradually establish a free trade area in a transitional period lasting a maximum of 10 years starting from the entry into force of this Agreement (hereinafter called 'the Agreement`), in accordance with the provisions of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (GATT).

2. The combined nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Bulgarian Customs Tariff shall be applied to the classification of goods for imports into Bulgaria.

3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be that actually applied erga omnes on the day preceding the date of entry into force of the Agreement.

4. If, after the entry into force of the Agreement, any tariff reduction is applied on an erga omnes basis, in particular, reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied.

5. The Community and Bulgaria shall communicate to each other their respective basic duties.

CHAPTER I Industrial products

Article 3 (EA 9)

1. The provisions of this Chapter shall apply to products originating in the Community and in Bulgaria listed on Chapters 25 to 97 of the combined nomenclature and of the Bulgarian Customs Tariff with the exception of the products listed in Annex I.

2. The provisions of Articles 4 to 8 included do not apply to products mentioned in Articles 10 and 11.

Article 4 (EA 10)

1. Customs duties on imports applicable in the Community to products originating in Bulgaria other than those listed in Annexes IIa, IIb and III shall be abolished on the entry into force of the Agreement.

2. Customs duties on imports applicable in the Community to products originating in Bulgaria which are listed in Annex IIa shall be progressively abolished in accordance with the following timetable:

- on the date of entry into force of the Agreement, each duty shall be reduced to 50 % of the basic duty,

- one year after the date of entry into force of the Agreement, the remaining duties shall be eliminated.

Customs duties on imports applicable in the Community to products originating in Bulgaria listed in Annex IIb shall be progressively reduced, from the date of entry into force of the Agreement, by annual reductions of 20 % of the basic duty so as to arrive at total abolition by the end of the fourth year after the date of entry into force of the Agreement.

3. The products of Bulgarian 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 at the end of the fifth year at the latest.

At the same time, the customs duties on imports to be applied to import quantities when the quotas have been exhausted or when the levying of customs duties has been reintroduced with respect to products covered by a tariff ceiling, shall be progressively dismantled, from the entry into force of the Agreement by annual reductions of 15 % of the basic duty. By the end of the fifth year, remaining duties shall be abolished.

4. Quantitative restrictions on imports to the Community and measures having an equivalent effect shall be abolished on the date of entry into force of the Agreement with regard to the products originating in Bulgaria.

Article 5 (EA 11)

1. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of the Agreement.

2. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable:

- one year after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty,

- three years after the entry into force of the Agreement, each duty shall be reduced to 40 % of the basic duty,

- five years after the entry into force of Agreement, the remaining duties shall be eliminated.

3. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex VI shall be progressively reduced in accordance with the following timetable:

- three years after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty,

- five years after the entry into force of the Agreement, each duty shall be reduced to 60 % of the basic duty,

- six years after the entry into force of the Agreement, each duty shall be reduced to 45 % of the basic duty,

- seven years after the entry into force of the Agreement, each duty shall be reduced to 30 % of the basic duty,

- eight years after the entry into force of the Agreement, each duty shall be reduced to 15 % of the basic duty,

- nine years after the entry into force of the Agreement, the remaining duties shall be eliminated.

4. Quantitative restrictions on imports into Bulgaria of products originating in the Community and measures having an equivalent effect shall be abolished upon entry into force of the Agreement, except for those listed in Annex VII, which shall be abolished in accordance with the timetable provided in that Annex.

Article 6 (EA 12)

The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 7 (EA 13)

1. The Community shall abolish in its imports from Bulgaria any charges having an effect equivalent to customs duties on imports upon the entry into force of the Agreement.

2. Bulgaria shall abolish in its imports from the Community any charges having an effect equivalent to customs duties on imports upon entry into force of the Agreement, except for those listed in Annex VIII, which shall be abolished in accordance with the timetable provided for in that Annex.

Article 8 (EA 14)

1. The Community and Bulgaria shall progressively abolish between them at the latest by the end of the fifth year after entry into force of the Agreement any customs duties on exports and charges having equivalent effect.

2. Quantitative restrictions on exports to Bulgaria and any measures having equivalent effect shall be abolished by the Community upon entry into force of the Agreement.

3. Quantitative restrictions on exports to the Community and any measures having equivalent effect shall be abolished by Bulgaria upon entry into force of the Agreement, with the exception of those listed in Annex IX, which shall be abolished at the latest by the end of the fifth year after the entry into force of the Agreement.

Article 9 (EA 15)

Each Party declares its readiness to reduce its customs duties in trade with the other Party more rapidly than is provided for in Articles 4 and 5 if its general economic situation and the situation of the economic sector concerned so permit.

The Joint Committee, referred to in Article 39 (hereinafter referred to as 'the Joint Committee` may make recommendations to this effect.

Article 10 (EA 16)

Protocol 1 lays down the arrangements applicable to the textile products referred to therein.

Article 11 (EA 17)

Protocol 2 lays down the arrangements applicable to products covered by the Treaty establishing the European Coal and Steel Community.

Article 12 (EA 18)

1. The provisions of this Chapter do not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex X in respect of products originating in Bulgaria.

2. The provisions of this Chapter do not preclude the introduction of an agricultural component by Bulgaria in the duties applicable to the products listed in Annex X in respect of products originating in the Community.

CHAPTER II Agriculture

Article 13 (EA 19)

1. The provisions of this Chapter shall apply to agricultural products originating in the Community and in Bulgaria.

2. The term 'agricultural products` means the products listed in Chapters 1 to 24 of the combined nomenclature and of the Bulgarian Customs Tariff and the products listed in Annex I, but excluding fishery products as defined by Regulation (EEC) No 3687/91 on the common organization of the market in fishery products.

Article 14 (EA 20)

Protocol 3 lays down the trade arrangements for processed agricultural products which are listed in the said Protocol.

Article 15 (EA 21)

1. The Community shall abolish at the date of entry into force of the Agreement the quantitative restrictions on imports of agricultural products originating in Bulgaria maintained by virtue of Council Regulation (EEC) No 3420/83 in the form existing on the date of signature hereof.

2. The agricultural products originating in Bulgaria listed in Annex XI shall benefit, upon the date of entry into force of the Agreement, from the reduction of customs duties and levies within the limits of Community quotas and upon the conditions provided in the same Annex.

3. Agricultural products originating in the Community listed in Annex XIIa shall be imported into Bulgaria free of quantitative restrictions.

Agricultural products originating in the Community listed in Annex XIIb shall be subject to the quantitative restrictions set out in that Annex.

4. The Community and Bulgaria shall grant each other the concessions referred to in Annexes XIII and XIV, on a harmonious and reciprocal basis, in accordance with the conditions laid down therein.

5. Taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of the agricultural policy in Bulgaria, of the role of agriculture in Bulgaria's economy, and of the consequences of the multilateral trade negotiations under the General Agreement on Tariffs and Trade, the Community and Bulgaria shall examine in the Joint Committee, product by product and on an orderly and reciprocal basis, the possibilities of granting each other further concessions.

Article 16 (EA 22)

Notwithstanding other provisions of this Agreement, and in particular Article 25, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party, which are the subject of concessions granted in Article 15, cause serious disturbance to the markets in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the measures it deems necessary.

CHAPTER III Fisheries

Article 17 (EA 23)

The provisions of this Chapter shall apply to fishery products originating in the Community and in Bulgaria, which are covered by Regulation (EEC) No 3687/91.

Article 18 (EA 24)

The provisions of Article 15 (5) shall apply mutatis mutandis to fishery products.

CHAPTER IV Common provisions

Article 19 (EA 25)

The provisions of this Chapter shall apply to trade in all products, except where otherwise provided herein or in Protocols 1, 2 or 3.

Article 20 (EA 26)

1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in the trade between the Community and Bulgaria from the date of entry into force of the Agreement.

2. No new quantitative restrictions on imports or exports or measures having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in the trade between the Community and Bulgaria from the date of entry into force of the Agreement.

3. Without prejudice to the concessions granted under Article 15, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuance of the respective agricultural policies of Bulgaria and the Community or the taking of any measures under such policies.

Article 21 (EA 27)

1. The two Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

2. Products exported to the territory of one of the two Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them.

Article 22 (EA 28)

1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas for arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement.

2. Consultations between the Parties shall take place within the Joint Committee concerning Agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies with third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account can be taken of the mutual interests of the Community and Bulgaria stated in this Agreement.

Article 23 (EA 29)

Exceptional measures of limited duration which derogate from the provisions of Articles 5 and 20 (1) may be taken by Bulgaria in the form of increased customs duties.

These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems.

Customs duties on imports applicable in Bulgaria to products originating in the Community introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 15 % of total imports from the Community of industrial products as defined in Chapter I, during the last year for which statistics are available.

These measures shall be applied for a period not exceeding five years, unless a longer duration is authorized by the Joint Committee. They shall cease to apply at the latest at the expiration of the transitional period.

No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product.

Bulgaria shall inform the Joint Committee of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held in the Joint Committee on such measures and the sectors to which they apply before they are applied. When taking such measures, Bulgaria shall provide the Joint Committee with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction at equal annual rates. The Joint Committee may decide on a different schedule.

Article 24 (EA 30)

If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI of the General Agreement on Tariffs and Trade, it may take appropriate measures against this practice in accordance with the Agreement relating to the application of Article VI of the General Agreement on Tariffs and Trade, with related internal legislation and with the conditions and procedures laid down in Article 28.

Article 25 (EA 31)

Where any product is being imported in such increased quantities and under such conditions as to cause, or threaten to cause:

- serious injury to domestic producers of like or directly competitive products in the territory of one of the Parties, or

- serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region,

the Community or Bulgaria, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28.

Article 26 (EA 32)

Where compliance with the provisions of Articles 8 and 20 leads to:

(i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures having equivalent effect; or

(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party,

and where the situations above referred to give rise, or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.

Article 27 (EA 33)

The Member States and Bulgaria shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Bulgaria. The Joint Committee will be informed about the measures adopted to implement this objective.

Article 28 (EA 34)

1. In the event of the Community or Bulgaria subjecting imports of products liable to give rise to the difficulties referred to in Article 25 to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.

2. In the cases specified in Articles 24, 25 and 26, before taking the measures provided for therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Community or Bulgaria, as the case may be, shall supply the Joint Committee with all relevant information, with a view to seeking a solution acceptable to the two Parties.

In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.

The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

3. For the implementation of paragraph 2, the following provisions shall apply:

(a) as regards Article 25, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Joint Committee, which may take any decision needed to put an end to such difficulties.

If the Joint Committee or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen;

(b) as regards Article 24, the Joint Committee shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping or no other satisfactory solution has been reached within 30 days of the matter being referred to the Joint Committee, the importing Party may adopt the appropriate measures;

(c) as regards Article 26, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Joint Committee.

The Joint Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned;

(d) where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Bulgaria, whichever is concerned, may, in the situations specified in Articles 24, 25 and 26, apply forthwith the precautionary and provisional measures strictly necessary to deal with the situation, and the Joint Committee will be informed immediately.

Article 29 (EA 35)

Protocol 4 lays down rules of origin for the application of tariff preferences foreseen in this Agreement.

Article 30 (EA 36)

This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of the exhaustible natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 31 (EA 37)

Protocol 5 lays down the specific provisions to apply to trade between Bulgaria of the one part and Spain and Portugal of the other part.

TITLE III PAYMENTS, COMPETITION AND OTHER ECONOMIC PROVISIONS

Article 32 (EA 60)

The Parties undertake to authorize in freely convertible currency, any payments on the current account of balance of payments to the extent that the transactions underlying the payments concern movements of goods between the Parties which have been liberalized pursuant to this Agreement.

Article 33 (EA 63)

With reference to the provisions of this Chapter, and notwithstanding the provisions of Article 35, until a full convertibility of Bulgarian currency in the meaning of Article VIII of the International Monetary Fund (IMF) is introduced, Bulgaria may in exceptional circumstances apply exchange restrictions connected with the granting or taking up of short and medium-term credits to the extent that such restrictions are imposed on Bulgaria for the granting of such credits and are permitted according to Bulgaria's status under the IMF.

Bulgaria shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. Bulgaria shall inform the Joint Committee promptly of the introduction of such measures and of any changes therein.

Article 34 (EA 64)

1. The following are incompatible with the proper functioning of this Agreement, in so far as they may affect trade between the Community and Bulgaria:

(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of Bulgaria as a whole or in a substantial part thereof;

(iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European Economic Community.

3. The Joint Committee shall, within three years of the entry into force of the Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2.

4. (a) For the purposes of applying the provision of paragraph 1 (iii), the Parties recognize that during the first five years after the entry into force of the Agreement, any public aid granted by Bulgaria shall be assessed taking into account the fact that Bulgaria shall be regarded as an area identical to those areas of the Community described in Article 92 (3) (a) of the Treaty establishing the European Economic Community. The Joint Committee shall, taking into account the economic situation of Bulgaria, decide whether that period should be extended by further periods of five years.

(b) Each Party shall ensure transparency in the area of public aid, inter alia, by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.

5. With regard to products referred to in Chapters II and III of Title II:

- the provision of paragraph 1 (iii) does not apply,

- any practices contrary to paragraph 1 (i) should be assessed according to the criteria established by the Community on the basis of Articles 42 and 43 of the Treaty establishing the European Economic Community and in particular of those established in Council Regulation No 26/1962.

6. If the Community or Bulgaria considers that a particular practice is incompatible with the terms of paragraph 1, and:

- is not adequately dealt with under the implementing rules referred to in paragraph 3, or

- in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,

it may take appropriate measures after consultation within the Joint Committee or after 30 working days following referral for such consultation.

In the case of practices incompatible with paragraph 1 (iii) of this Article, such appropriate measures may, where the General Agreement on Tariffs and Trade applies thereto, only be adopted in conformity with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instrument negotiated under its auspices which are applicable between the Parties.

7. Notwithstanding any provisions to the contrary adopted in conformity with paragraph 3, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.

8. This Article shall not apply to the products covered by the Treaty establishing the European Coal and Steel Community which are the subject of Protocol 2.

Article 35 (EA 65)

1. The Parties shall endeavour to avoid the imposition of restrictive measures including measures relating to imports for balance of payments purposes. In the event of their introduction, the Party having introduced the same shall present to the other Party a time schedule for their removal.

2. Where one or more Member States or Bulgaria is in serious balance of payments difficulties, or under imminent threat thereof, the Community or Bulgaria, as the case may be, may, in accordance with the conditions established under the General Agreement on Tariffs and Trade, adopt restrictive measures, including measures relating to imports, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Community or Bulgaria, as the case may be, shall inform the other Party forthwith.

Article 36 (EA 66)

With regard to public undertakings and undertakings to which special or exclusive rights have been granted, the Joint Committee shall ensure that, as from the third year from the date of entry into force of the Agreement, the principles of the Treaty establishing the European Economic Community, notably Article 90, and the principles of the concluding document of the April 1990 Bonn meeting of the Conference on Security and Cooperation in Europe (notably entrepreneurs' freedom of decision) are upheld.

Article 37 (EA 67)

Bulgaria shall continue to improve the protection of intellectual, industrial and commercial property rights in order to provide, by the end of the fifth year after the entry into force of the Agreement, for a level of protection similar to that provided in the Community by Community acts, in particular the ones referred to in Annex XV, including comparable means of enforcing such rights.

Article 38 (EA 94 (3))

Mutual assistance between administrative authorities in customs matters of the Parties shall take place in accordance with the provisions of Protocol 6.

TITLE IV INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 39 (EA 105)

The Joint Committee set up by the Agreement on Trade and Commercial and Economic Cooperation signed between the European Economic Community and Bulgaria on 8 May 1990 shall perform the duties assigned to it by this Agreement until the Association Council provided for in Article 105 of the Europe Agreement is established.

Article 40 (EA 107)

The Joint Committee shall, for the purpose of attaining the objectives of the Agreement, have the power to take decisions in the cases provided for therein. The decisions taken shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Joint Committee may also make appropriate recommendations.

It shall draw up its decisions and recommendations by agreement between the two Parties.

Article 41 (EA 108)

1. Each of the two Parties may refer to the Joint Committee any dispute relating to the application or interpretation of this Agreement.

2. The Joint Committee may settle the dispute by means of a decision.

3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.

4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months.

The Joint Committee shall appoint a third arbitrator.

The arbitrators' decisions shall be taken by majority vote.

Each Party to the dispute must take the steps required to implement the decision of the arbitrators.

Article 42 (EA 114)

Within the scope of this Agreement, each Party undertakes to ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights and their property rights, including those concerning intellectual, industrial and commercial property.

Article 43 (EA 115)

Nothing in this Agreement shall prevent a Contracting Party from taking any measures:

(a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b) which relate to the production of, or trade in, arms, ammunition or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 44 (EA 116)

In the fields covered by this Agreement and without prejudice to any special provisions contained therein:

- the arrangements applied by Bulgaria in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or firms,

- the arrangements applied by the Community in respect of Bulgaria shall not give rise to any discrimination between Bulgarian nationals or its companies or firms.

Article 45 (EA 117)

Products originating in Bulgaria shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves.

Article 46 (EA 118)

1. The Parties shall take any general or specific measures required to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in the Agreement are attained.

2. If either Party considers that the other Party has failed to fulfil an obligation under the Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. These measures shall be notified immediately to the Joint Committee and shall be the subject of consultations within the Joint Committee if the other Party so requests.

Article 47 (EA 120)

Protocols 1, 2, 3, 4, 5, 6 and 7, and Annexes I to XV shall form an integral part of this Agreement.

Article 48 (EA 121)

This Agreement shall be applicable until the entry into force of the Europe Agreement signed in Brussels on 8 March 1993.

Either Party may denounce this Agreement by notifying the other Party. This Agreement shall cease to apply six months after the date of such notification.

Article 49 (EA 122)

This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Economic Community and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of the Republic of Bulgaria.

Article 50 (EA 123)

This Agreement is drawn up in duplicate in the Danish, Dutch, English, French, German, Italian, Spanish, Greek, Portuguese and Bulgarian languages, each of these texts being equally authentic.

Article 51 (EA 124)

This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on 31 December 1993.

Upon its entry into force, Articles 2 to 18 of the Agreement between the European Economic Community, the European Atomic Energy Community and Bulgaria on trade and economic and commercial cooperation signed in Brussels on 8 May 1990, shall be suspended.

Article 52 (EA 125)

1. In the event that this Agreement enters into force after 1 January but on 31 December at the latest for the purposes of Titles II and III of this Agreement and Protocols 1, 2, 3, 4, 5, 6 and 7 hereto, the terms 'date of entry into force of the Agreement` shall mean:

- the date of entry into force in relation to obligations taking effect on that date, and

- 1 January 1993 in relation to obligations taking effect after the date of entry into force by reference to the date of entry into force.

2. In the case of entry into force after 1 January, the provisions of Protocol 7 shall apply.

En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente acuerdo.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale.

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

Åéò ðßóôùóç ôùí áíùôÝñù, ïé õðïãåãñáììÝíïé ðëçñåîïýóéïé Ýèåóáí ôéò õðïãñáöÝò ôïõò óôçí ðáñïýóá óõìöùíßá.

In witness whereof the undersigned Plenipotentiaries have signed this Agreement.

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

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

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Overeenkomst hebben gesteld.

Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do presente acordo.

>REFERENCE TO A FILM>

Hecho en Bruselas, el ocho de marzo de mil novecientos noventa y tres.

Udfærdiget i Bruxelles, den ottende marts nitten hundrede og treoghalvfems.

Geschehen zu Brüssel am achten März neunzehnhundertdreiundneunzig.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò ïêôþ Ìáñôßïõ ÷ßëéá åííéáêüóéá åííåíÞíôá ôñßá.

Done at Brussels on the eighth day of March in the year one thousand nine hundred and ninety-three.

Fait à Bruxelles, le huit mars mil neuf cent quatre-vingt-treize.

Fatto a Bruxelles, addì otto marzo millenovecentonovantatré.

Gedaan te Brussel, de achtste maart negentienhonderd drieënnegentig.

Feito em Bruxelas, em oito de Março de mil novecentos e noventa e três.>REFERENCE TO A FILM>

Por el Consejo y la Comisión de las Comunidades Europeas

For Rådet og Kommissionen for De Europæiske Fællesskaber

Für den Rat und die Kommission der Europäischen Gemeinschaften

Ãéá ôï Óõìâïýëéï êáé ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùí

For the Council and the Commission of the European Communities

Pour le Conseil et la Commission des Communautés européennes

Per il Consiglio e la Commissione delle Comunità europee

Voor de Raad en de Commissie van de Europese Gemeenschappen

Pelo Conselho e pela Comissão das Comunidades Europeias

>REFERENCE TO A FILM>

Por la República de Bulgaria

For Republikken Bulgarien

Für die Republik Bulgarien

Ãéá ôç Äçìïêñáôßá ôçò Âïõëãáñßáò

For the Republic of Bulgaria

Pour la République de Bulgarie

Per la Repubblica di Bulgaria

Voor de Republiek Bulgarije

Pela República da Bulgária

>REFERENCE TO A FILM>

LIST OF ANNEXES

Page

I Articles 3 and 13: Definition of industrial and agricultural products .......... 15

IIa Article 4 (2): Community tariff concessions .......... 16

IIb Article 4 (2): Community tariff concessions .......... 16

III Article 4 (3): Community tariff concessions .......... 17

IV Article 5 (1): Bulgarian tariff concessions .......... 18

V Article 5 (2): Bulgarian tariff concessions .......... 22

VI Article 5 (3): Bulgarian tariff concessions .......... 31

VII Article 5 (4): Quantitative restrictions on imports into Bulgaria .......... 45

VIII Article 7: Charges having an equivalent effect to customs duties on imports into Bulgaria .......... 45

IX Article 8 (3): Quantitative restrictions on exports from Bulgaria .......... 46

X Article 12: Processed agricultural products .......... 46

(Chapters 25 to 97 of the combined nomenclature)

XIa, b Article 15 (2): Community agricultural concessions .......... 47

XIIa, b Article 15 (3): Bulgarian agricultural concessions (Quantitative restrictions) .......... 51

XIIIa, b Article 15 (4): Community extra agricultural concessions .......... 52

Annex to Annexes XIb and XIIIb .......... 56

XIVa, b Article 15 (4): Bulgarian extra agricultural concessions .......... 57

XV Article 37: Intellectual property .......... 61

ANNEX I

List of products referred to in Articles 3 and 13 of the Agreement

>TABLE>

ANNEX IIa

List of products referred to in the first subparagraph of Article 4 (2)

>

TABLE POSITION>

ANNEX IIb

List of products referred to in the second subparagraph of Article 4 (2)

>

TABLE POSITION>

ANNEX III

List of products referred to in Article 4 (3)

>TABLE>

ANNEX IV

List of products referred to in Article 5 (1)

>TABLE>

ANNEX V

List of products referred to in Article 5 (2)

>TABLE>

ANNEX VI

List of products referred to in Article 5 (3)

>TABLE>

ANNEX VII related to the Provisions of Article 5 (4)

Bulgaria shall abolish by the end of the transitional period at the latest the prohibition on imports of cars at least 10 years old or older, calculated from the date of the first registration falling under the following codes of the Bulgarian Customs Tariff:

8703 21 10

8703 22 10

8703 23 10

8703 24 10

8703 31 10

8703 32 10

8703 33 10

8703 90 10

ANNEX VIII related to the Provisions of Article 7

Bulgaria shall abolish on its imports from the Community charges having an effect equivalent to customs duties on imports in accordance with the following timetable:

- five years after the entry into force of the Agreement at the latest the 10 % import tax on imports of cars of a cylinder capacity of 2 500 and more cm3 falling within the following codes of the Bulgarian Customs Tariff:

8703 23 10

8703 24 10.

The tax will be progressively phased out as follows:

- one year after the date of the entry into force of the Agreement the tax shall be reduced to 8 %,

- three years after the entry into force of the Agreement the tax shall be reduced to 4 %,

- five years after the entry into force of the Agreement the remaining tax shall be eliminated;

- five years after the entry into force of the Agreement at the latest the 5 % import tax on imports of perfumery and cosmetics falling within the following codes of the Bulgarian Customs Tariff:

3304

3305

3306

3307

- by January 1995 at the latest the 0,5 % customs clearance fee will be transformed to reflect only the services rendered for customs clearing.

ANNEX IX related to the Provisions of Article 8 (3)

1. Bulgaria shall abolish at the latest by the end of the fifth year after entry into force of the Agreement the non-automatic licensing on exports of products falling under the following codes of the Bulgarian Customs Tariff:

Waste and scrap of ferrous metals

7204 10 00

7204 21 00

7204 29 00

7204 30 00

7204 41 00

7204 49 00

Waste and scrap of non-ferrous metals

7404 00 00

7503 00 00

7602 00 00

7802 00 00

7902 00 00

8002 00 00

Bulgaria reserves the right within the five-year period to replace the non-automatic licensing with an export tax which will be abolished in accordance with the provisions of Article 8 (1).

2. Bulgaria shall replace not later that 1 January 1994 the export ceilings on raw hides of bovine, ovine and caprine animals and pig's skins falling under the following codes of the Bulgarian Customs Tariff:

4101

4102

4103 10 00

4103 90 00

4107

by export taxes which will be eliminated at the latest by the end of the fifth year after entry into force of the Agreement in accordance with the provisions of Article 8 (1).

ANNEX X

Goods referred to in Article 12

>TABLE>

ANNEX XIa

List of products referred to in Article 15 (2) (1)

The products listed in this Annex will be subject to a 50 % levy reduction

>TABLE>

(1) Notwithstanding the rules for interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN codes and corresponding description taken together.

ANNEX XIb

List of products referred to in Article 15 (2) (1)

>TABLE>

(1) Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN codes and corresponding description taken together.

ANNEX XIIa

List of products referred to in Article 15 (3)

Bulgaria shall abolish from the entry into force of the Agreement the quantitative restrictions on imports originating in the Community of the following products:

import quotas for the period 1 November to 31 May for:

ex 0702 00 00 greenhouse tomatoes

ex 0707 00 00 greenhouse cucumbers.

ANNEX XIIb

List of products referred to in Article 15 (3)

Products originating in the Community for which Bulgaria shall issue import licences automatically up to the quantities indicated

>TABLE>

Further quantities of these products originating in the Community may be imported into Bulgaria within the limits of, and under the conditions applied to, the global Bulgarian quotas for the products in question.

ANNEX XIIIa

List of products referred to in Article 15 (4) (1)

Imports into the Community of the following products originating in Bulgaria shall be subject to the concessions set out below:

the quantities imported under the CN code referred to in this Annex with the exception of codes 0104 and 0204 will be subject to levy and duty reduction of 20 % in the first year, 40 % in the second year and 60 % in the successive years.

>TABLE>

(1) Notwithstanding the rules for interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN codes and corresponding description taken together.

ANNEX XIIIb

List of products referred to in Article 15 (4) (1)

Imports into the Community of the following products originating in Bulgaria shall be subject to the concessions set out below:

>TABLE>

Annex to Annexes XIb and XIIIb

Minimum import price arrangement for certain soft fruit for processing

1. Minimum import prices are fixed for each marketing year for the following products:

>TABLE>

The minimum import prices are fixed by the Community in consultation with Bulgaria, taking into consideration the price evolution, imported quantities and market development in the Community.

2. The minimum import prices shall be respected in accordance with the following criteria:

- during each three-month period of the marketing year the average unit value for each product listed in paragraph 1, imported into the Community, shall not be lower than the minimum import price for that product,

- during any two-week period the average unit value for each product listed in paragraph 1, imported into the Community, shall not be lower than 90 % of the minimum import price for that product, in so far as the quantities imported during this period are not less than 4 % of normal annual imports.

3. In the event of failure to observe one of these criteria, the Community may introduce measures ensuring that the minimum import price is respected for each consignment of the product concerned imported from Bulgaria.

(1) Notwithstanding the rules for interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN codes and corresponding description taken together.

ANNEX XIVa

List of products referred to in Article 15 (4) (1)

The quantities imported from the Community into Bulgaria under the tariff headings of the Bulgarian Customs Tariff referred to in this Annex will be subject to reduction of the applicable duty and of charges having an equivalent effect of:

- 10 % in the first year,

- 20 % in the second year and

- 30 % in the successive years.

>TABLE>

(1) Notwithstanding the rules for the interpretation of the Bulgarian Customs Tariff (BCT), the wording for the discription of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the BCT codes. Where ex BCT codes are indicated, the preferential scheme is to be determined by application of the BCT codes and corresponding description taken together.

ANNEX XIVb

List of products referred to in Article 15 (4) (1)

The quantities imported from the Community into Bulgaria under the tariff headings of the Bulgarian Customs Tariff referred to in this Annex will be subject to reduction of the applicable duty and of charges having an equivalent effect of:

- 5 % in the first year,

- 10 % in the second year, and

- 15 % in the successive years.

>TABLE>

(1) Notwithstanding the rules for the interpretation of the Bulgarian Customs Tariff (BCT), the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the BCT codes. Where ex BCT codes are indicated, the preferential is to be determined by application of the BCT codes and corresponding description taken together.

ANNEX XV

Intellectual property (Article 37)

Community Acts:

- first Council Directive 89/104/EEC of 21 December 1988 to approximate the laws of the Member States relating to trade marks,

- Council Directive 87/54/EEC of 16 December 1986 on the legal protection of topographies of semiconductor products,

- Council Directive 91/250/EEC of 14 May 1991 on the legal protection of computer programmes,

- Council Regulation (EEC) No 1768/92 of 18 June 1992 concerning the creation of a supplementary protection certificate for medicinal products,

- Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs,

- Council Directive 92/100/EEC of 19 November 1992 on rental rights and lending rights and on certain rights related to copyright in the field of intellectual property.

LIST OF PROTOCOLS

>TABLE>

PROTOCOL 1 on textile and clothing products

Article 1

This Protocol applies to the textile and clothing products (hereinafter 'textile products`) defined as follows:

- for quantitative purposes, textiles products are those listed in Annex I to the Bilateral Agreement between the Community and Bulgaria on trade in textile products initialled on 11 July 1986 and applied provisionally since 1 January 1987, as amended by the exchange of letters initialled in Brussels on 21 November 1991 and by the Exchange of Letters initialled in Brussels on 18 December 1992,

- for tariff purposes, textile products are those in Section XI (Chapters 50 to 63) of the combined nomenclature of the Community, and of the Bulgarian Customs Tariff respectively.

Article 2

1. Customs duties on imports applicable in the Community to textile products falling within Section XI (Chapters 50 to 63) of the combined nomenclature and originating in Bulgaria in accordance with Protocol 4 of the Agreement shall be reduced in order to arrive at their elimination at the end of a period of six years starting from the entry into force of the Agreement, as follows:

- upon entry into force of the Agreement, to five-sevenths of the basic duty,

- at the start of the third year, to four-sevenths of the basic duty,

- at the start of the fourth year, to three-sevenths of the basic duty,

- at the start of the fifth year, to two-sevenths of the basic duty,

- at the start of the sixth year, to one-seventh of the basic duty,

- at the start of the seventh year the remaining duties shall be eliminated.

2. Customs duties on imports applicable in Bulgaria to textile products fallin within Section XI (Chapters 50 to 63) of the Bulgarian Customs Tariff and originating in the Community in accordance with Protocol 4 of the Agreement shall be progressively eliminated as provided for in Article 5 of the Agreement.

3. The customs duties applicable to compensating poducts imported into the Community which originate in Bulgaria within the meaning of Protocol 4 of the Agreement, and which result from operations in Bulgaria in accordance with Council Regulation (EEC) No 636/82, shall be eliminated on the date of the entry into force of the Agreement.

4. The provisions of Articles 6 and 7 of the Agreement shall apply to trade in textile products between the Parties.

Article 3

1. From the date of the entry into force of the Agreement until the entry into force of the Protocol referred to in paragraph 2 below, the quantitative arrangements and other related issues regarding exports of textile products originating in Bulgaria to the Community shall continue to be governed by the Bilateral Agreement on trade in textile products between the Community and Bulgaria, initialled on 11 July 1986 and applied provisionally since 1 January 1987, as amended by the exchange of letters initialled in Brussels on 21 November 1991 and by the exchange of letters initialled in Brussels on 18 December 1992. The Parties agree to amend as necessary the aforementioned Bilateral Agreement on trade in textile products to take account of the Community's policy on textiles after 1 January 1993.

The Parties agree that, as regards exports to the Community of textiles products originating in Bulgaria, Article 20 (2) and Article 31 of the Agreement shall not apply during the period of application of the aforementioned Bilateral Agreement on trade in textile products.

2. Bulgaria and the Community hereby undertake to negotiate a new Protocol on quantitative arrangements and other related issues on their trade in textile products as soon as possible, taking into account the future regime governing international trade in textile products under discussion in the multilateral negotiations in Geneva. The modalities and period during which non-tariff barriers shall be eliminated will be determined in the new Protocol. The period shall be equal to half the integration period to be decided in the Uruguay Round negotiations starting from 1 January 1994 and it shall not be shorter than five years starting from 1 January 1993 or from the entry into force of the Agreement, if later. The new Protocol shall follow on the expiration of the agreement on textile products referred to in paragraph 1 above.

3. Taking into account the development of textile trade between the Parties, the degree of access of textile exports originating in the Community to Bulgaria and the results of the multilateral trade negotiations of the Uruguay Round, provision will be made in the new Protocol for a substantial improvement of the regime applied to imports into the Community regarding import levels, growth rates, flexibility for quantitative limitations and elimination of certain quantitative limitations after a case-by-case examination. Notwithstanding Article 20 (2) and Article 25 of the Agreement, provision for a specific textiles safeguard mechanism shall also be made in the new Protocol. Such a mechanism shall not be globally more restrictive than the safeguard mechanism provided for in the textile Agreement referred to in paragraph 1 above.

4. Quantitative restrictions and measures of equivalent effect on imports of Community textile products into Bulgaria shall be abolished over the same period as is envisaged for the elimination of quantitative restrictions and measures of equivalent effect on imports of Bulgarian textile products into the Community.

Article 4

From the entry into force of the Agreement, no new quantitative restrictions or measures having equivalent effect shall be imposed except as provided for under the Agreement and its Protocols. In no case shall non-tariff barriers be applied in trade in textile products between the Community and Bulgaria after the transitional period provided for in Article 2 of the Agreement.

PROTOCOL 2 on ECSC products

Article 1

This Protocol applies to products listed in Annex I to this Protocol.

CHAPTER I ECSC steel products

Article 2

Customs duties on imports applicable in the Community on ECSC steel products originating in Bulgaria shall be progressively abolished in accordance with the following timetable:

1. each duty shall be reduced to 80 % of the basic duty on the date of entry into force of the Agreement;

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 3

1. Customs duties on imports applicable in Bulgaria to ECSC steel products originating in the Community which are listed in Annex II to this Protocol shall be abolished on the date of entry into force of the Agreement.

2. Customs duties on imports applicable in Bulgaria to ECSC steel products originating in the Community which are listed in Annex III to this Protocol shall be progressively reduced in accordance with the following timetable:

- one year after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty,

- three years after the entry into force of the Agreement, each duty shall be reduced to 40 % of the basic duty,

- five years after the entry into force of the Agreement the remaining duties shall be eliminated.

3. Customs duties on imports applicable in Bulgaria to ECSC steel products originating in the Community which are listed in Annex IV to this Protocol shall be progressively reduced in accordance with the following timetable:

- three years after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty,

- five years after the entry into force of the Agreement, each duty shall be reduced to 60 % of the basic duty,

- six years after the entry into force of the Agreement, each duty shall be reduced to 45 % of the basic duty,

- seven years after the entry into force of the Agreement, each duty shall be reduced to 30 % of the basic duty,

- eight years after the entry into force of the Agreement, each duty shall be reduced to 15 % of the basic duty,

- nine years after the entry into force of the Agreement the remaining duties shall be eliminated.

Article 4

1. Quantitative restrictions and measures having equivalent effect on imports into the Community of ECSC steel products originating in Bulgaria shall be abolished on the date of the entry into force of the Agreement.

2. Quantitative restrictions and measures of equivalent effect on imports into Bulgaria of ECSC steel products originating in the Community shall be abolished on the date of the entry into force of the Agreement.

Article 5

If, during a period equal to the derogation for subsidies pursuant to Article 9 (4) and given the particular sensitivity of the steel markets, imports of specific steel products originating in one Party cause or threaten to cause serious injury to domestic producers of like products or serious disturbances to the steel markets of the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution and notwithstanding other provisions of the Agreement and in particular Articles 25 and 28, when exceptional circumstances require immediate action, the importing Party may adopt forthwith quantitative or other solutions strictly necessary to deal with the situation, in accordance with its international and multilateral obligations.

CHAPTER II ECSC coal products

Article 6

Customs duties on imports applicable in the Community on ECSC coal products originating in Bulgaria shall be progressively abolished in accordance with the following timetable:

1. on 1 January 1994 each duty shall be reduced to 50 % of the basic duty;

2. on 31 December 1995 the remaining duties shall be eliminated.

Article 7

Customs duties on imports applicable in Bulgaria to ECSC coal products originating in the Community shall be progressively abolished as provided for in Article 5 of the Agreement:

- for products listed in Annex II to this Protocol customs duties shall be abolished on the date of entry into force of the Agreement,

- for products listed in Annex IV to this Protocol customs duties shall be progressively reduced in accordance with Article 5 (3) of the Agreement.

Article 8

1. Quantitative restrictions and measures having equivalent effect applicable in the Community to ECSC coal products originating in Bulgaria shall be abolished at the latest one year after the entry into force of the Agreement, with the exception of those concerning the products and the regions described in Annex V, which shall be abolished at the latest four years after the entry into force of the Agreement.

2. Quantitative restrictions and measures having equivalent effect on imports applicable in Bulgaria to ECSC coal products originating in the Community shall be abolished upon entry into force of the Agreement.

CHAPTER III Common provisions

Article 9

1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Bulgaria:

(i) all agreements of cooperative or concentrative nature between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of Bulgaria as a whole or in a substantial part thereof;

(iii) public aid in any form whatsoever except derogations allowed pursuant to the ECSC Treaty.

2. Any practices contrary to this Article should be assessed on the basis of criteria arising from the application of the rules of Articles 65 and 66 of the Treaty establishing the ECSC, of Articles 85 and 86 of the Treaty establishing the EEC and the rules on State aids, including the secondary legislation.

3. The Joint Committee shall, within three years of the entry into force of the Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2.

4. The Contracting Parties recognize that during the first five years after the entry into force of the Agreement, and by derogation from paragraph 1 (iii) of this Article, Bulgaria may exceptionally, as regards ECSC steel products, grant public aid for restructuring purposes, provided that:

- it leads to the viability of the benefiting firms under normal market conditions at the end of the restructuring period,

- the amount and intensity of such aid are strictly limited to what is absolutely necessary in order to restore such viability and are progressively reduced,

- the restructuring programme is linked to a global rationalizing and reduction of overall production capacity in Bulgaria.

5. Each Party shall ensure transparency in the area of public aid by a full and continuous exchange of information to the other Party, including amount, intensity and purpose of the aid and detailed restructuring plan.

6. If the Community or Bulgaria considers that a particular practice is incompatible with the terms of paragraph 1 as amended by paragraph 4 of this Article, and

- is not adequately dealt with under the implementing rules referred to in paragraph 3, or

- in the absence of such rules and if such practice causes or threatens to cause prejudice to the interests of the other Party or material injury to its domestic industry,

the affected Party may take appropriate measures if no solution is found within 30 days of the day the official request was introduced.

In the case of practices incompatible with paragraph 1 (iii) of this Article, such appropriate measures may only cover measures adopted in conformity with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instrument negotiated under its auspices which are applicable between the Parties.

Article 10

The provisions of Articles 6, 7 and 8 of the Agreement shall apply to trade between the partners in ECSC products.

Article 11

The Parties agree that one of the special bodies established by the Joint Committee shall be a Contact Group which will discuss the implementation of this Protocol.

ANNEX I

List of ECSC coal and steel products

2601 11 00

2601 12 00

2602 00 00

2619 00 10

2701 11 00

2701 11 90

2701 12 10

2701 12 90

2701 19 00

2701 20 00

2702 10 00

2702 20 00

2704 00 19

2704 00 30

7201 10 11

7201 10 19

7201 10 30

7201 10 90

7201 20 00

7201 30 10

7201 30 90

7201 40 00

7202 11 20

7202 11 80

7202 99 11

7203 10 00

7203 90 00

7204 10 00

7204 21 00

7204 29 00

7204 30 00

7204 41 10

7204 41 91

7204 41 99

7204 49 10

7204 49 30

7204 49 91

7204 49 99

7204 50 10

7204 50 90

7206 10 00

7206 90 00

7207 11 11

7207 11 19

7207 12 11

7207 12 19

7207 19 11

7207 19 15

7207 19 31

7207 20 11

7207 20 15

7207 20 17

7207 20 31

7207 20 33

7207 20 51

7207 20 55

7207 20 57

7207 20 71

7208 11 00

7208 12 10

7208 12 91

7208 12 95

7208 12 98

7208 13 10

7208 13 91

7208 13 95

7208 13 98

7208 14 10

7208 14 91

7208 14 99

7208 21 10

7208 21 90

7208 22 10

7208 22 91

7208 22 95

7208 22 98

7208 23 10

7208 23 91

7208 23 95

7208 23 98

7208 24 10

7208 24 91

7208 24 99

7208 31 00

7208 32 10

7208 32 30

7208 32 51

7208 32 59

7208 32 91

7208 32 99

7208 33 10

7208 33 91

7208 33 99

7208 34 10

7208 34 90

7208 35 10

7208 35 90

7208 41 00

7208 42 10

7208 42 30

7208 42 51

7208 42 59

7208 42 91

7208 42 99

7208 43 10

7208 43 91

7208 43 99

7208 44 10

7208 44 90

7208 45 10

7208 45 90

7208 90 10

7209 11 00

7209 12 10

7209 12 90

7209 13 10

7209 13 90

7209 14 10

7209 14 90

7209 21 00

7209 22 10

7209 22 90

7209 23 10

7209 23 90

7209 24 10

7209 24 91

7209 24 99

7209 31 00

7209 32 10

7209 32 90

7209 33 10

7209 33 90

7209 34 10

7209 34 90

7209 41 00

7209 42 10

7209 42 90

7209 43 10

7209 43 90

7209 44 10

7209 44 90

7209 90 10

7210 11 10

7210 12 11

7210 12 19

7210 20 10

7210 31 10

7210 39 10

7210 41 10

7210 49 10

7210 50 10

7210 60 11

7210 60 19

7210 70 31

7210 70 39

7210 90 31

7210 90 33

7210 90 35

7210 90 39

7210 90 90

7211 11 00

7211 12 10

7211 12 90

7211 19 10

7211 19 91

7211 19 99

7211 21 00

7211 22 10

7211 22 90

7211 29 10

7211 29 91

7211 29 99

7211 30 10

7211 41 10

7211 41 91

7211 49 10

7211 90 11

7212 10 10

7212 10 91

7212 21 00

7212 29 11

7212 30 11

7212 40 10

7212 40 91

7212 50 31

7212 50 51

7212 60 11

7212 60 91

7213 10 00

7213 20 00

7213 31 00

7213 39 00

7213 41 00

7213 49 00

7213 50 10

7213 50 90

7214 20 00

7214 30 00

7214 40 10

7214 40 91

7214 40 99

7214 50 10

7214 50 91

7214 50 99

7214 60 00

7215 90 10

7216 10 00

7216 21 00

7216 22 00

7216 31 11

7216 31 19

7216 31 91

7216 31 99

7216 32 11

7216 32 19

7216 32 91

7216 32 99

7216 33 10

7216 33 90

7216 40 10

7216 40 90

7216 50 10

7216 50 90

7216 90 10

7218 10 00

7218 90 11

7218 90 13

7218 90 15

7218 90 19

7218 90 50

7219 11 10

7219 11 90

7219 12 10

7219 12 90

7219 13 10

7219 13 90

7219 14 10

7219 14 90

7219 21 11

7219 21 19

7219 21 90

7219 22 10

7219 22 90

7219 23 10

7219 23 90

7219 24 10

7219 24 90

7219 31 10

7219 31 90

7219 32 10

7219 32 90

7219 33 10

7219 33 90

7219 34 10

7219 34 90

7219 35 10

7219 35 90

7219 90 11

7219 90 19

7220 11 00

7220 12 00

7220 20 10

7220 90 11

7220 90 31

7221 00 10

7221 00 90

7222 10 11

7222 10 19

7222 10 51

7222 10 59

7222 10 99

7222 30 10

7222 40 11

7222 40 19

7222 40 30

7224 10 00

7224 90 01

7224 90 09

7224 90 15

7224 90 30

7225 10 10

7225 10 91

7225 10 99

7225 20 10

7225 20 30

7225 30 00

7225 40 10

7225 40 30

7225 40 50

7225 40 70

7225 40 90

7225 50 10

7225 50 90

7225 90 10

7226 10 10

7226 10 30

7226 20 10

7226 20 31

7226 20 51

7226 20 71

7226 91 10

7226 91 90

7226 92 10

7226 99 11

7226 99 31

7227 10 00

7227 20 00

7227 90 10

7227 90 30

7227 90 80

7228 10 10

7228 10 30

7228 20 11

7228 20 19

7228 20 30

7228 30 10

7228 30 30

7228 30 80

7228 60 10

7228 70 10

7228 70 31

7228 80 10

7228 80 90

7301 10 00

7302 10 31

7302 10 39

7302 10 90

7302 20 00

7302 40 10

7302 90 10

ANNEX II

List of ECSC coal and steel products referred to in Article 3 (1) and Article 7 of Protocol 2

>TABLE>

ANNEX III

List of ECSC coal and steel products, referred to in Article 3 (2) of Protocol 2

>TABLE>

ANNEX IV

List of ECSC coal and steel products, referred to in Articles 3 (3) and 7 of Protocol 2

>TABLE>

ANNEX V

Products and regions referred to as exceptions in Article 8 of Protocol 2

Products

2601 11 00

2601 12 00

2602 00 00

2619 00 10

2701 11 00

2701 11 90

2701 12 10

2701 12 90

2701 19 00

2701 20 00

2702 10 00

2702 20 00

2704 00 19

2704 00 30

Regions

All regions of:

- the Federal Republic of Germany,

- the Kingdom of Spain.

PROTOCOL 3 on trade between Bulgaria and the Community in processed agricultural products not covered by Annex II to the EEC Treaty

Article 1

1. The Community shall grant the tariff concessions referred to in Annex I for processed agricultural products originating in Bulgaria. In the case of the goods referred to in Annex II, however, reductions of the variable components shall be granted within the quantity limits established by the Community.

2. During 1996, Bulgaria shall grant tariff concessions determined in accordance with this Protocol for the processed agricultural products referred to in Annex III.

3. The Joint Committee may:

- add to the list of processed agricultural products referred to in this Protocol,

- increase the quantities of processed agricultural products eligible for the tariff concessions established by this Protocol.

4. The Joint Committee may replace the concessions referred to in paragraph 1 with a system of compensatory amounts with no quantity limits, established on the basis of the differences found between the prices on the Community and Bulgarian markets of the agricultural products actually used to produce the processed agricultural products covered by this Protocol. The Joint Committee shall draw up a list of the products to which the compensatory amounts are applicable and a list of basic products. It shall adopt general implementing rules to that end.

Article 2

For the purposes of the Articles which follow, the definitions given below shall apply:

- 'goods`: the processed agricultural products referred to in this Protocol,

- 'agricultural component of the levy or duty`: the part of the levy or duty corresponding to the quantity of agricultural products incorporated into the processed product and deducted from the levy or duty applicable when such agricultural products are imported unprocessed,

- 'non-agricultural component of the levy or duty`: the part of the levy or duty remaining when the agricultural component is deducted from the total levy or duty,

- 'basic products`: the agricultural products considered as having been used in the production of goods within the meaning of Regulation (EEC) No 3033/80,

- 'base quantity`: the quantity of a basic product calculated in the manner stipulated in Article 6 of Regulation (EEC) No 3033/80 and which is used to determine the variable component applicable to goods of a given type, in accordance with the terms of the same Regulation.

Article 3

1. From the date this Agreement enters into force, the Community shall phase out the non-agricultural component of the duty in accordance with the timetable set out in Annex I. Where appropriate, there shall be no quantity limit.

2. The Community applies to imports from Bulgaria an agricultural component calculated on the basis below:

(a) for the goods for which Annex I stipulates a variable component (MOB), the latter shall be identical to that applying in the case of third countries;

(b) for the goods for which Annex I stipulates a reduced variable component (MOBR), the level of the latter shall be calculated by reducing the base quantities of the basic products for which a levy reduction is granted by 20 % in 1993, 40 % in 1994 and 60 % from 1995. In the case of other basic products, the corresponding reductions, for the same years, shall be 10, 20 and 30 %.

This reduction of the variable component shall be granted within the limits of the tariff quotas established in Annex II. For the quantities in excess of those quotas, the variable component applying to all third countries shall be restored.

3. In accordance with the procedure described in Article 1 (3), the variable components of goods, which are or will be included in Annex I, shall be replaced by reduced variable components if they are applied and in conformity with paragraph 2, if those goods are added to Annex III.

Article 4

1. Bulgaria shall reduce progressively its import duties on the goods listed in Annex III in accordance with a timetable established by the Joint Committee. Those reductions shall be initiated in 1996 and be completed by 1 January 2000.

2. From the time at which the Agreement enters into force until 31 December 1996, Bulgaria shall apply to the goods referred to in Annex III the rates of duty in force on 28 February 1993. However, if reform of the Bulgarian agricultural policy causes the agricultural component of the duty to increase, Bulgaria shall inform the Joint Committee accordingly, which may agree to an increase in the rate of duty concerned which corresponds to the size of the agricultural component.

3. The duties applicable from 1 January 2000 may not exceed the equivalence of the duties applicable to the agricultural products incorporated in those goods in respect of the quantities of those agricultural products needed for the processing of the goods.

Article 5

The reduction of the variable components referred to in Article 3 shall apply only from 1 February 1994.

ANNEX I

Import duties applicable in the Community to goods originating in Bulgaria

>

TABLE POSITION>

ANNEX II

Quotas applicable to goods originating in Bulgaria on import into the Community

>TABLE>

ANNEX III

1302 12 00

1505 90 00

1518 00 39

1518 00 90

1519 11 00

1519 12 00

1519 19 10

1520 90 00

1704 10 11

1704 10 19

1704 10 91

1704 10 99

1805 00 00

1806 20 10

1806 31 00

1806 32 10

1806 32 90

1806 90 11

1806 90 19

1806 90 31

1806 90 39

1806 90 50

1806 90 60

1806 90 70

1806 90 90

1901 10 00

1901 90 90

1902 19 11

1902 19 90

1904 10 10

1904 10 30

1904 10 90

1905 30 11

1905 30 19

1905 30 30

1905 30 51

1905 30 59

1905 30 91

1905 30 99

1905 90 10

1905 90 20

1905 90 30

1905 90 40

1905 90 45

1905 90 55

1905 90 60

1905 90 90

2101 10 11

2101 10 99

2102 10 31

2102 10 39

2102 20 11

2102 20 19

2102 30 00

2103 20 00

2103 90 90

2105 00 10

2105 00 91

2105 00 99

2106 10 10

2106 10 90

2106 90 91

2106 90 99

2201 90 00

2202 90 10

2202 90 91

2202 90 95

2202 90 99

2203 00 10

2203 00 90

2205 10 10

2205 10 90

PROTOCOL 4 concerning the definition of the concept of originating products and methods of administrative cooperation

TITLE I DEFINITION OF THE CONCEPT OF ORIGINATING PRODUCTS

Article 1

Origin Criteria

For the purpose of implementing the Agreement, and without prejudice to the provisions of Article 2 of this Protocol, the following products shall be considered as:

1. products originating in the Community:

(a) products wholly obtained in the Community, within the meaning of Article 3;

(b) products obtained in the Community in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 4;

2. products originating in Bulgaria:

(a) products wholly obtained in Bulgaria, within the meaning of Article 3;

(b) products obtained in Bulgaria in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 4.

Article 2

Bilateral cumulation

1. Notwithstanding Article 1 (1) (b), materials originating in Bulgaria within the meaning of this Protocol shall be considered as materials originating in the Community and it shall not be necessary that such materials have undergone sufficient working or processing there, provided, however, that they have undergone working or processing going beyond that described in Article 4 (3) of this Protocol.

2. Notwithstanding Article 1 (2) (b), materials originating in the Community within the meaning of this Protocol shall be considered as originating in Bulgaria and it shall not be necessary that such materials have undergone sufficient working or processing there, provided, however, that they have undergone working or processing going beyond that described in Article 4 (3) of this Protocol.

Article 3

Wholly obtained products

1. Within the meaning of Article 1 (1) (a) and (2) (a), the following shall be considered as wholly obtained either in the Community or in Bulgaria:

(a) mineral products extracted from their soil or from their seabed;

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained by hunting or fishing conducted there;

(f) products of sea fishing and other products taken from the sea by their vessels;

(g) products made aboard their factory ships exclusively from products referred to in subparagraph (f);

(h) used articles collected there fit only for the recovery of raw materials;

(i) waste and scrap resulting from manufacturing operations conducted there;

(j) goods produced there exclusively from the products specified in subparagraphs (a) to (i).

2. The term 'their vessels` in paragraph 1 (f) shall apply only to vessels:

- which are registered or recorded in Bulgaria or in a Member State of the Community,

- which sail under the flag of Bulgaria or of a Member State of the Community,

- which are owned to an extent of at least 50 % by nationals of Bulgaria or of Member States of the Community, or by a company with its head office in one of these States or in Bulgaria, of which the manager or managers, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of Bulgaria or of Member States of the Community and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to these States, to Bulgaria, to their public bodies or to their nationals,

- of which the master and officers are nationals of Bulgaria or of Member States of the Community,

- of which at least 75 % of the crew are nationals of Bulgaria or of Member States of the Community.

3. The terms 'Bulgaria` and 'the Community` shall also cover the territorial waters which surround Bulgaria and the Member States of the Community.

Sea-going vessels, including factory ships on which the fish caught is worked or processed, shall be considered as part of the territory of the Community or of Bulgaria provided that they satisfy the conditions set out in paragraph 2.

Article 4

Sufficiently processed products

1. For the purposes of Article 1, non-originating materials are considered to be sufficiently worked or processed when the product obtained is classified in a heading which is different from that in which all the non-originating materials used in its manufacture are classified, subject to paragraphs 2 and 3.

The expressions 'chapters` and 'headings` used in this Protocol shall mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonized Commodity Description and Coding System (hereinafter referred to as the 'Harmonized System` or HS). The expression 'classified` shall refer to the classification of a product or material under a particular heading.

2. For a product mentioned in columns 1 and 2 of the list in Annex II, the conditions set out in column 3 for the product concerned must be fulfilled instead of the rule in paragraph 1.

(a) Where in the list in Annex II a percentage rule is applied in determining the originating status of a product obtained in the Community or in Bulgaria, the value added by the working or processing shall correspond to the ex works price of the product obtained, less the value of third-country materials imported into the Community or Bulgaria.

(b) The term 'value` in the list in Annex II shall mean the customs value at the time of the import of the non-originating materials used or, if this is not known and cannot be ascertained, the first ascertainable price paid for these materials in the territory concerned.

Where the value of the originating materials used needs to be established, the provisions of the above subparagraph shall be applied mutatis mutandis.

(c) The term 'ex works price` in the list in Annex II shall mean the price paid for the product obtained to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used in manufacture, minus any internal taxes which are, or may be, repaid when the product obtained is exported.

(d) 'Customs value` shall be understood as the value determined in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, established in Geneva on 12 April 1979.

3. For the purpose of implementing paragraphs 1 and 2, the following shall be considered as insufficient working or processing to confer the status of originating products, whether or not there is a change of heading:

(a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;

(c) (i) changes of packaging and breaking up and assembly of consignments;

(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards etc., and all other simple packaging operations;

(d) affixing marks, labels and other like distinguishing signs on products or their packaging;

(e) simple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Protocol to enable them to be considered as originating either in the Community or in Bulgaria;

(f) simple assembly of parts of articles to constitute a complete article;

(g) a combination of two or more operations specified in subparagraphs (a) to (f);

(h) slaughter of animals.

Article 5

Neutral elements

In order to determine whether a product originates in the Community or in Bulgaria, it shall not be necessary to establish the origin of electrical power, fuel, plant and equipment and machines and tools used to obtain such product nor of materials which do not enter into their final composition.

Article 6

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the price thereof or are not separately invoiced are regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 7

Sets

Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component articles are originating products. Nevertheless, when a set is composed of originating and non-originating articles, the set as a whole shall be regarded as originating provided that the value of the non-originating articles does not exceed 15 % of ex works price of the set.

Article 8

Direct transport

1. The preferential treatment provided for under this Agreement applies only to products or materials which are transported between the territories of the Community and of Bulgaria without entering any other territory. However, goods originating in Bulgaria or in the Community and constituting one single consignment which is not split up may be transported through territory other than that of the Community or Bulgaria, with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the goods have remained under the surveillance of the customs authorities in the country of transit or of warehousing and that they have not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition.

2. Evidence that the conditions referred to in paragraph 1 have been fulfilled shall be supplied to the responsible customs authorities by the production of:

(a) a single transport document issued in the exporting country covering the passage through the country of transit;

(b) or a certificate issued by the customs authorities of the country of transit:

- giving an exact description of the goods,

- stating the dates of unloading and reloading of the goods or of the embarkation or disembarkation, identifying the ships or other means of transport used, and

- certifying the conditions under which the goods remained in the transit country;

(c) or failing these, any substantiating documents.

Article 9

Territorial requirement

The conditions set out in this Title relative to the acquisition of originating status must be fulfilled without interruption in the Community or in Bulgaria except as provided for in Article 2.

If originating products exported from the Community or Bulgaria to another country are returned, except insofar as provided for in Article 2, they must be considered as non-originating unless it can be demonstrated to the satisfaction of the customs authorities that:

- the goods returned are the same goods as those exported, and

- they have not undergone any operation beyond that necessary to preserve them in good condition while in that country.

TITLE II PROOF OF ORIGIN

Article 10

Movement certificate EUR.1

Evidence of originating status of products, within the meaning of this Protocol, shall be given by a movement certificate EUR.1, a specimen of which appears in Annex III to this Protocol.

Article 11

Normal procedure for the issue of certificates

1. A movement certificate EUR.1 shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative. Such application shall be made on a form, a specimen of which appears in Annex III to this Protocol, which shall be completed in accordance with this Protocol.

Applications for movement certificates EUR.1 must be preserved for at least two years by the customs authorities of the exporting State.

2. The exporter or his representative shall submit with his request any appropriate supporting document proving that the products to be exported are such as to qualify for the issue of a movement certificate EUR.1.

He shall undertake to submit, at the request of the appropriate authorities, any supplementary evidence they may require for the purpose of establishing the correctness of the originating status of the products eligible for preferential treatment and shall undertake to agree to any inspection of his accounts and to any check on the processes of the obtaining of the above products carried out by the said authorities.

Exporters must keep for at least two years the supporting documents referred to in this paragraph.

3. A movement certificate EUR.1 may be issued only where it can serve as the documentary evidence required for the purpose of implementing the agreement.

4. The movement certificate EUR.1 shall be issued by the customs authorities of a Member State of the European Economic Community if the goods to be exported can be considered as products originating in the Community within the meaning of Article 1 (1) of this Protocol. The movement certificate EUR.1 shall be issued by the customs authorities of Bulgaria if the goods to be exported can be considered as products originating in Bulgaria within the meaning of Article 1 (2) of this Protocol.

5. Where the cumulation provisions of Article 2 are applied, the customs authorities of the Member States of the Community or of Bulgaria may issue movement certificates EUR.1 under the conditions laid down in this Protocol if the goods to be exported can be considered as products originating in the Community or Bulgaria within the meaning of this Protocol and provided that the goods covered by the movement certificates EUR.1 are in the Community or in Bulgaria.

In these cases, the movement certificates EUR.1 shall be issued subject to the presentation of the proof of origin previously issued or made out. This proof of origin must be kept for at least two years by the customs authorities of the exporting State.

6. Since the movement certificate EUR.1 constitutes the documentary evidence for the application of the preferential tariff arrangements laid down in the Agreement, it shall be the responsibility of the customs authorities of the exporting country to take any steps necessary to verify the origin of the goods and to check the other statements on the certificate.

7. For the purpose of verifying whether the conditions for issuing EUR.1 certificates have been met, the customs authorities shall have the right to call for any documentary evidence or to carry out any check which they consider appropriate.

8. It shall be the responsibility of the customs authorities of the exporting State to ensure that the forms referred to in paragraph 1 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions. To this end, the description of the products must be indicated without leaving any blank lines. Where the space is not completely filled a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

9. The date of issue of the movement certificate must be indicated in the part of the certificate reserved for the customs authorities.

10. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting State when the products to which it relates are exported. It shall be made available to the exporter as soon as actual export has been effected or ensured.

Article 12

Long-term certificates EUR.1

1. Notwithstanding the provisions of Article 11 (10), a movement certificate EUR.1 may be issued by the customs authorities of the exporting State when only part of the products to which it relates are exported, in the case of a certificate covering a series of exportations of the same products from the same exporter to the same importer, over a maximum period of one year from the date of issue, hereinafter referred to as an 'LT certificate`.

2. LT certificates shall be issued, in accordance with the provisions of Article 11, at the discretion of the customs authorities of the exporting State and according to their own judgment of the need for this procedure, only where the originating status of the goods to be exported is expected to remain unchanged for the period of validity of the LT certificate. If any goods are no longer covered by the LT certificate, the exporter shall immediately inform the customs authorities who issued the certificate.

3. Where the LT certificate procedure applies, the customs authorities of the exporting State may prescribe the use of EUR.1 certificates bearing a distinctive sign by which they may be identified.

4. Box 11 'Customs endorsement` of the EUR.1 certificate must be endorsed as usual by the customs authorities of the exporting State.

5. One of the following phrases shall be entered in box 7 of the EUR.1 certificate:

'CERTIFICADO LT VÁLIDO HASTA EL . . .`

'LT-CERTIFICAT GYLDIGT INDTIL . . .`

'LT-CERTIFICATE GÜLTIG BIS . . .`

'ÐÉÓÔÏÐÏÉÇÔÉÊÏ ËÔ ÉÓ×ÕÏÍ ÌÅ×ÑÉ . . .`

'LT-CERTIFICATE VALID UNTIL . . .`

'CERTIFICAT LT VALABLE JUSQU'AU . . .`

'CERTIFICATO LT VALIDO FINO AL . . .`

'LT-CERTIFICAAT GELDIG TOT EN MET . . .`

'LT-CERTIFICADO VALIDO ATÉ . . .`

'LT-CERTIFICAT VALIDEN DO . . .`

(date indicated in Arabic numerals).

6. Reference is not required in box 8 and box 9 of the LT certificate to the marks and numbers and number and kind of packages and the gross weight (kg) or other measures (litres, m3, etc.). Box 8 msut, however, contain a description and designation of the goods which is sufficiently precise to allow for their identification.

7. Notwithstanding Article 17, the LT certificate must be submitted to the customs office of import at or before the first importation of any goods to which it relates. When the importer carries out the customs clearance at several customs offices in the State of importation, the customs authorities may require him to produce a copy of the LT certificate to all of those offices.

8. Where an LT certificate has been submitted to the customs authorities, the evidence of the originating status of the imported goods shall, during the validity of the LT certificate, be given by invoices which satisfy the following conditions:

(a) when an invoice includes both goods originating in the Community or Bulgaria and non-originating goods, the exporter shall distinguish clearly between these two categories;

(b) the exporter shall state on each invoice the number of the LT certificate which covers the goods and the date of expiry of the certificate and the names of the country or countries in which the goods originate.

The statement on the invoice made by the exporter of the number of the LT certificate with the indication of the country of origin shall constitute a declaration that the goods fulfil the conditions laid down in this Protocol for the acquisition of preferential origin status in trade between the Community and Bulgaria.

The customs authorities of the exporting State may require that the entries which, under the above provisions, must appear on the invoice, be supported by the manuscript signature followed by the name of the signatory in clear script;

(c) the description and the designation of the goods on the invoice shall be in sufficient detail to show clearly that the goods are also listed on the LT certificate to which the invoice refers;

(d) the invoices can be made out only for the goods exported during the period of validity of the relevant LT certificate. They may however be produced at the customs office of importation within four months of their being made out by the exporter.

9. In the framework of the LT certificate procedure, invoices which satisfy the conditions of this Article may be made out and/or transmitted using telecommunications or electronic data-processing methods. Such invoices shall be accepted by the customs of the importing State as evidence of the originating status of the goods imported in accordance with the procedures laid down by the customs authorities there.

10. Should the customs authorities of the exporting State identify that a certificate and/or invoice issued under the provisions of this Article is invalid in relation to any goods supplied, they shall immediately notify the customs authorities of the importing State of the facts.

11. The provisions of this Article shall not prejudice application of the rules of the Community, the Member States and Bulgaria on customs formalities and the use of customs documents.

Article 13

Issue of EUR.1 retrospectively

1. In exceptional circumstances a movement certificate EUR.1 may also be issued after export of the products to which it relates if it was not issued at the time of export because of errors or involuntary omissions or special circumstances.

2. For the implementation of paragraph 1, the exporter must in the written application:

- indicate the place and date of export of the products to which the certificate relates,

- certify that no movement certificate EUR.1 was issued at the time of export of the products in question, and state the reasons.

3. The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file.

Certificates issued retrospectively must be endorsed with one of the following phrases:

'NACHTRÄGLICH AUSGESTELLT`, 'DÉLIVRÉ A POSTERIORI`, 'RILASCIATO A POSTERIORI`, 'AFGEGEVEN A POSTERIORI`, 'ISSUED RETROSPECTIVELY`, 'UDSTEDT EFTERFØLGENDE`, 'ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ`, 'EXPEDIDO A POSTERIORI`, 'EMITIDO A POSTERIORI`, 'ISADEN A POSTERIORI`.

4. The endorsement referred to in paragraph 3 shall be inserted in the 'Remarks` box on the movement certificate EUR.1.

Article 14

Issue of a duplicate EUR.1

1. In the event of the theft, loss or destruction of a movement certificate EUR.1, the exporter may apply in writing to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2. The duplicate issued in this way must be endorsed with one of the following words:

'DUPLIKAT`, 'DUPLICATA`, 'DUPLICATO`, 'DUPLICAAT`, 'DUPLICATE`, 'DUPLIKAT`, 'ÁÍÔÉÃÑÁÖÏ`, 'DUPLICADO`, 'SEGUNDA VÍA`, 'DUBLICAT`.

3. The endorsement referred to in paragraph 2 shall be inserted in the 'Remarks` box on the movement certificate EUR.1.

4. The duplicate, which must bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Article 15

Simplified procedure for the issue of certificates

1. By way of derogation from Articles 11, 12 and 14 of this Protocol, a simplified procedure for the issue of EUR.1 movement certificates can be used in accordance with the following provisions.

2. The customs authorities in the exporting State may authorize any exporter, hereinafter referred to as 'approved exporter`, making frequent shipments for which EUR.1 movement certificates may be issued and who offers, to the satisfaction of the competent authorities, all guarantees necessary to verify the originating status of the products, not to submit to the customs office of the exporting State at the time of export either the goods or the application for an EUR.1 certificate relating to those goods, for the purpose of obtaining an EUR.1 certificate under the conditions laid down in Article 11 of this Protocol.

3. The authorization referred to in paragraph 2 shall stipulate, at the coice of the competent authorities, that box No. 11 'Customs endorsement` of the EUR.1 movement certificate must:

(a) either be endorsed beforehand with the stamp of the competent customs office of the exporting State and the signature, which may be a facsimile, of an official of that office; or

(b) be endorsed by the approved exporter with a special stamp which has been approved by the customs authorities of the exporting State and corresponds to the specimen given in Annex V of this Protocol. Such stamp may be pre-printed on the forms.

4. In the cases referred to in paragraphs 3 (a), one of the following phrases shall be entered in box No 7 'Remarks` of the EUR.1 movement certificate:

'PROCEDIMIENTO SIMPLIFICADO`, 'FORENKLET PROCEDURE`, 'VEREINFACHTES VERFAHREN`, 'ÁÐËÏÕÓÔÅÕÌÅÍÇ ÄÉÁÄÉÊÁÓÉÁ`, 'SIMPLIFIED PROCEDURE`, 'PROCÉDURE SIMPLIFIÉE`, 'PROCEDURA SEMPLIFICATA`, 'VEREENVOUDIGDE PROCEDURE`, 'PROCEDIMENTO SIMPLIFICADO`, 'OPROSTENA PROCEDURA`.

5. Box No 11 'Customs endorsement` of the EUR.1 certificate shall be completed if necessary by the approved exporter.

6. The approved exporter shall, if necessary, indicate in box No 13 'Request for verification` of the EUR.1 certificate the name and address of the authority competent to verify such certificate.

7. Where the simplified procedure is applied, the customs authorities of the exporting State may prescribe the use of EUR.1 certificates bearing a distinctive sign by which they may be identified.

8. In the authorization referred to in paragraph 2 the competent authorities shall specify in particular:

(a) the conditions under which the applications for EUR.1 certificates are to be made;

(b) the conditions under which these applications are to be kept for at least two years;

(c) in the cases referred to in paragraph 3 (b) the authority competent to carry out the subsequent verification referred to in Article 27 of this Protocol.

9. The customs authorities of the exporting State may declare certain categories of goods ineligible for the special treatment provided for in paragraph 2.

10. The customs authorities shall refuse the authorization referred to in paragraph 2 to exporters who do not offer all the guarantees which they consider necessary. The competent authorities may withdraw the authorization at any time. They must do so where the approved exporter no longer satisfies the conditions or no longer offers these guarantees.

11. The approved exporter may be required to inform the competent authorities, in accordance with the rules which they lay down, of the goods to be dispatched by him, so that such authorities may make any verification they think necessary before the departure of the goods.

12. The customs authorities of the exporting State may carry out any check on approved exporters which they consider necessary. Such exporters must allow this to be done.

13. The provisions of this Article shall be without prejudice to the application of the rules of the Community, the Member States and Bulgaria concerning customs formalities and the use of customs documents.

Article 16

Replacement of certificates

1. It shall at any time be possible to replace one or more movement certificates EUR. 1 by one or more other certificates provided that this is done by the customs office or other competent authorities responsible for controlling the goods.

2. When products which originate in the Community or in Bulgaria and are imported into a free zone under cover of an EUR.1 certificate undergo treatment or processing, the authorities concerned must issue a new EUR.1 certificate at the exporter's request if the treatment of processing undergone is in conformity with the provisions of this Protocol.

3. The replacement certificate shall be regarded as a definite movement certificate EUR.1 for the purposes of the application of this Protocol, including the provisions of this Article.

4. The replacement certificate shall be issued on the basis of a written request from the re-exporter, after the authorities concerned have verified the information supplied in the applicant's request. The date and serial number of the original movement certificate EUR.1 shall be given in box 7.

Article 17

Validity of certificates

1. A movement certificate EUR.1 must be submitted, within four months of the date of issue by the customs authorities of the exporting State, to the customs office of the importing State where the products are entered.

2. Movement certificates EUR.1 which are submitted to the customs authorities of the importing State after the final date of presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit the certificates by the final date set is due to reasons of force majeure or exceptional circumstances.

3. In other cases of belated presentation, the customs authorities of the importing State may accept the certificates where the products have been submitted to them before the said final date.

Article 18

Exhibitions

1. Products sent from the Community or Bulgaria for exhibition in a country other than Bulgaria or a Member State of the Community and sold after the exhibition for importation into Bulgaria or the Community shall benefit on importation from the provisions of the Agreement on condition that the products meet the requirements of this Protocol entitling them to be recognized as originating in the Community or in Bulgaria and provided that it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from the Community or Bulgaria to the country in which the exhibition is held and has exhibited them there;

(b) the products have been sold or otherwise disposed of by that exporter to someone in the Community or Bulgaria;

(c) the products have been consigned during the exhibition or immediately thereafter to the Community or Bulgaria in the state in which they were sent for exhibition;

(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2. A movement certificate EUR.1 must be produced to the customs authorities in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the nature of the products and the conditions under which they have been exhibited may be required.

3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.

Article 19

Submission of certificates

Movement certificates EUR.1 shall be submitted to the customs authorities in the importing State in accordance with the procedures laid down by that State. The said authorities may require a translation of a certificate. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.

Article 20

Importation by instalments

Without prejudice to Article 4 (3) of this Protocol, where, at the request of the person declaring the goods at the customs, a dismantled or non-assembled article falling within Chapter 84 or 85 of the Harmonized System is imported by instalments on the conditions laid down by the competent authorities, it shall be considered to be a single article and a movement certificate may be submitted for the whole article upon import of the first instalment.

Article 21

Preservation of certificates

Movement certificates EUR.1 shall be preserved by the customs authorities of the importing State in accordance with the rules in force in that State.

Article 22

Form EUR.2

1. Notwithstanding Article 10, the evidence of originating status, within the meaning of this Protocol, for consignments containing only originating products and whose value does not exceed ECU 5 110 per consignment, may be provided by a form EUR.2, a specimen of which appears in Annex IV to this Protocol.

2. The form EUR.2 shall be completed and signed by the exporter or, under the exporter's responsibility, by his authorized representative in accordance with this Protocol.

3. A form EUR.2 shall be completed for each consignment.

4. The exporter who applied for the form EUR.2 shall submit at the request of the customs authorities of the exporting State all supporting documents concerning the use of this form.

5. Articles 17, 19 und 21 shall apply mutatis mutandis to form EUR.2.

Article 23

Discrepancies

The discovery of slight discrepancies between the statements made in the movement certificate EUR.1 or in the form EUR.2 and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the document null and void if it is duly established that it corresponds to the products submitted.

Article 24

Exemptions from proof of origin

1. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the production of a movement certificate EUR.1 or the completion of form EUR.2, provided that such products are not imported by way of trade and have been declared as meeting the conditions required for the application of the agreement, and where there is no doubt as to the veracity of such declaration.

2. Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.

Furthermore, the total value of these products must not exceed ECU 365 in the case of small packages or ECU 1 025 in the case of the contents of travellers' personal luggage.

Article 25

Amounts expressed in ecu

1. Amounts in the national currency of the exporting State equivalent to the amounts expressed in ecu shall be fixed by the exporting State and communicated to the other Parties to this Agreement. When the amounts are more than the corresponding amounts fixed by the importing State, the latter shall accept them if the goods are invoiced in the currency of the exporting State or of another of the countries mentioned in Article 2 of this Protocol.

If the goods are invoiced in the currency of another Member State of the Community, the importing State shall recognize the amount notified by the country concerned.

2. Up to and including 30 April 1993, the ecu to be used in any given national currency shall be the equivalent in that national currency of the ecu as at 3 October 1990. For each successive period of two years, it shall be the equivalent in that national currency of the ecu as at the first working day in October in the year immediately preceding that two-year period.

TITLE III ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 26

Communication of stamps and addresses

The customs authorities of the Member States and of Bulgaria shall provide each other, through the Commission of the European Communities, with specimen impressions of stamps used in their customs offices for the issue of EUR.1 certificates and with the addresses of the customs authorities responsible for issuing movement certificates EUR.1 and for verifying those certificates and forms EUR.2.

Article 27

Verification of movement certificates EUR.1 and of forms EUR.2

1. Subsequent verification of movement certificates EUR.1 and of forms EUR.2 shall be carried out at random or whenever the customs authorities of the importing State have reasonable doubts as to the authenticity of the document or the accuracy of the information regarding the true origin of the products in question.

2. For the purpose of the subsequent verification of movement certificates EUR.1, the customs authorities of the exporting State must keep copies of the certificates, as well as any export documents referring to them, for at least two years.

3. In order to ensure the proper application of this Protocol, Bulgaria and the Member States of the Community shall assist each other, through their respective customs administrations, in checking the authenticity of movement certificates EUR.1, including those issued pursuant to Article 11 (5), and the forms EUR.2 and the accuracy of the information concerning the actual origin of the products concerned.

4. For the purpose of implementing paragraph 1, the customs authorities of the importing State shall return the movement certificate EUR.1 or form EUR.2, or a photocopy thereof, to the customs authorities of the exporting State, giving, where appropriate, the reasons of form or substance for an enquiry.

The relevant commercial documents, or a copy thereof, shall be attached to the certificate EUR.1 or form EUR. 2 and the customs authorities shall forward any information that has been obtained suggesting that the particulars given on the said certificate or the said form are inaccurate.

5. If the customs authorities of the importing State decide to suspend execution of the provisions of the Agreement while awaiting the results of the verification, they shall offer to release the products to the importer subject to any precautionary measures judged necessary.

6. The customs authorities of the importing State shall be informed of the results of the verification as soon as possible. These results must be such as to make it possible to determine whether the disputed movement certificate EUR.1 or form EUR.2 apply to the products in question and whether those products can, in fact, qualify for the application of the preferential arrangements.

If in cases of reasonable doubt there is no reply within ten months of the date of the verification request, or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting authorities shall refuse, except in the case of force majeure or exceptional circumstances, any benefit from the preferential treatment laid down in the Agreement.

7. Disputes which cannot be settled between the customs authorities of the importing State and those of the exporting State, or which raise a question as to the interpretation of this Protocol, shall be submitted to the Customs Co-operation Committee.

8. In all cases the settlement of disputes between the importer and the customs authorities of the importing State shall be under the legislation of the said State.

9. Where the verification procedure or any other available information appears to indicate that the provisions of this Protocol are being contravened, the Community or Bulgaria shall in its own initiative or at the request of the other Party carry out appropriate enquiries or arrange for such enquiries to be carried out with due urgency to identify and prevent such contraventions, and for this purpose the Community or Bulgaria may invite the participation of the other Party in these enquiries.

10. Where the verification procedure or any other available information appears to indicate that the provisions of this Protocol are being contravened, the products would be accepted as originating products under this Protocol only after completion of such aspects of administrative cooperation set down in this Protocol which may have been activated, including in particular the verification procedure.

Likewise, products would be refused treatment as originating products under this Protocol only after the completion of the verification procedure.

Article 28

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect particulars for the purpose of obtaining preferential treatment for products.

Article 29

Free zones

The Member States and Bulgaria shall take all necessary steps to ensure that products traded under cover of a movement certificate EUR.1, which in the course of transport use a free zone situated in their territory, are not substituted by other goods and that they do not undergo handling other than normal operations designed to prevent their deterioration.

TITLE IV CEUTA AND MELILLA

Article 30

Application of the Protocol

1. The term 'Community` used in this Protocol does not cover Ceuta or Melilla. The term 'products originating in the Community` does not cover products originating in these zones.

2. This Protocol shall apply mutatis mutandis to products originating in Ceuta and Melilla, subject to particular conditions set out in Article 31.

Article 31

Special conditions

1. The following provisions shall apply instead of Article 1 and references to that Article shall apply mutatis mutandis to this Article.

2. Providing they have been transported directly in accordance with the provisions of Article 8, the following shall be considered as:

1. products originating in Ceuta and Melilla:

(a) products wholly obtained in Ceuta and Melilla;

(b) products obtained in Ceuta and Melilla in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 4 of this Protocol; or that

(ii) those products are originating in Bulgaria or the Community within the meaning of this Protocol, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 4 (3);

2. products originating in Bulgaria:

(a) products wholly obtained in Bulgaria;

(b) products obtained in Bulgaria in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 4 of this Protocol; or that

(ii) those products are originating in Ceuta and Melilla or the Community within the meaning of this Protocol, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 4 (3).

3. Ceuta and Melilla shall be considered as a single territory.

4. The exporter or his authorized representative shall enter 'Bulgaria` and 'Ceuta and Melilla` in box 2 of movement certificates EUR.1. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in box 4 of movement certificates EUR.1.

5. The Spanish customs authorities shall be responsible for the application of this Protocol in Ceuta and Melilla.

TITLE V FINAL PROVISIONS

Article 32

Amendments to the Protocol

The Association Council shall examine at two-yearly intervals, or whenever Bulgaria or the Community so request, the application of the provisions of this Protocol, with a view to making any necessary amendments or adaptations.

Such examination shall take into account in particular the participation of the Contracting Parties in free trade zones or customs unions with third countries.

Article 33

Customs cooperation committee

1. A customs cooperation committee shall be set up, charged with carrying out administrative cooperation with a view to the correct and uniform application of this Protocol and with carrying out any other task in the customs field which may be entrusted to it.

2. The committee shall be composed, on the one hand, of experts of the Member States and of officials of the departments of the Commission of the European Communities who are responsible for customs questions and, on the other hand, of experts nominated by Bulgaria.

Article 34

Petroleum products

The products set out in Annex VI shall be temporarily excluded from the scope of this Protocol. Nevertheless, the arrangements regarding administrative cooperation shall apply, mutatis mutandis, to these products.

Article 35

Annexes

The Annexes to this Protocol shall form an integral part thereof.

Article 36

Implementation of the Protocol

The Community and Bulgaria shall each take the steps necessary to implement this Protocol.

Article 37

Goods in transit or storage

The provisions of the Agreement may be applied to goods which comply with the provisions of this protocol and which on the date of entry into force of the Agreement are either in transit or are in the Community or in Bulgaria in temporary storage in bonded warehouses or in free zones, subject to the submission to the customs authorities of the importing State, within four months of that date, or a certificate EUR.1 endorsed retrospectively by the competent authorities of the exporting State together with the documents showing that the goods have been transported directly.

LIST OF ANNEXES

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ANNEX I

NOTES

Foreword

These notes shall apply, where appropriate, to all manufactured products using non-originating materials, even if they are not subject to specific conditions contained in the list in Annex II but are subject instead to the change of heading rule set out in Article 4 (1).

Note 1

1.1. The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns a rule is specified in column 3. Where, in some cases, the entry in the first column is preceded by an 'ex`, this signifies that the rule in column 3 or 4 applies only to the part of that heading or chapter as described in column 2.

1.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rule in column 3 applies to all products which, under the Harmonized System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

1.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rule in column 3.

Note 2

2.1. The term 'manufacture` covers any kind of working or processing including 'assembly` or specific operations. However, see Note 3.5 below.

2.2. The term 'material` covers any ingredient, raw material, component or part, etc., used in the manufacture of the product.

2.3. The term 'product` refers to the product being manufactured, even if it is intended for later use in another manufacturing operation.

2.4. The term 'goods` covers both materials and products.

Note 3

3.1. In the case of any heading not in the list or any part of a heading that is not in the list, the 'change of heading` rule set out in Article 4 (1) applies. If a 'change of heading` condition applies to any entry in the list, then it is contained in the rule in column 3.

3.2. The working or processing required by a rule in column 3 has to be carried out only in relation to the non-originating materials used. The restrictions contained in a rule in column 3 likewise apply only to the non-originating materials used.

3.3. Where a rule states that 'materials of any heading` may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression 'manufacture from materials of any heading, including other materials of heading No . . .` means that only materials classified in the same heading as the product of a different description than that of the product as given in column 2 of the list may be used.

3.4. If a product made from non-originating materials which has acquired originating status during manufacture by virtue of the change of heading rule or its own list rule is used as a material in the process of manufacture of another product, then the rules applicable to the product in which it is incorporated does not apply to it.

For example:

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex works price, is made from 'other alloy steel roughly shaped by forging` of heading No 7224.

If this forging has been forged in the country concerned from a non-originating ingot then the forging has already acquired origin by virtue of the rule for heading No ex 7224 in the list. It can then count as originating in the value calculation for the engine regardless of whether it was produced in the same factory or another. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

3.5. Even if the change of heading rule or the other rules contained in the list are satisfied, a product shall not acquire originating status if the processing carried out, taken as a whole, is insufficient within the meaning of Article 4 (3).

3.6. The unit of qualification for the application of the origin rules shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System. In the case of sets of products which are classified by virtue of General Rule 3 for the interpretation of the Harmonized System, the unit of qualification shall be determined in respect of each item in the set: this provision is equally applicable to sets of heading Nos 6308, 8206 and 9605.

Accordingly, it follows that:

- when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification,

- when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the origin rules,

- where, under General Rule 5 of the Harmonized System, packing is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Note 4

4.1. The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer origin. Thus if a rule says that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not.

4.2. When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used.

For example:

The rule for fabrics says that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; one can use one or the other or both.

If, however, a restriction applies to one material and other restrictions apply to other materials in the same rule, then the restrictions only apply to the materials actually used.

For example:

The rule for sewing machines specifies that both the thread tension mechanism used and the zigzag mechanism used must originate; these two restrictions only apply if the mechanisms concerned are actually incorporated into the sewing machine.

4.3. When a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule.

For example:

The rule for heading No 1904 which specifically excludes the use of cereals or their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not produced from cereals.

For example:

In the case of an article made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage.

See also Note 7.3 in relation to textiles.

4.4. If in a rule in the list two or more percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. The maximum value of all the non-originating materials used may never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to.

Note 5

5.1. The term 'natural fibres` is used in the list to refer to fibres other than artificial or synthetic fibres and is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, the term 'natural fibres` includes fibres that have been carded, combed or otherwise processed but not spun.

5.2. The term 'natural fibres` includes horsehair of heading No 0503, silk of heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of heading Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and other vegetable fibres of heading Nos 5301 to 5305.

5.3. The terms 'textile pulp`, 'chemical materials` and 'paper-making materials` are used in the list to describe the materials not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

5.4. The term 'man-made staple fibres` is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings Nos 5501 to 5507.

Note 6

6.1. In the case of the products classified within those headings in the list to which a reference is made to this Note, the conditions set out in column 3 of the list shall not be applied to any basic textile materials used in their manufacture which, taken together, represent 10 % or less of the total weight of all the basic textile materials used (but see also Notes 6.3 and 6.4).

6.2. However, this tolerance may only be applied to mixed products which have been made from two or more basic textile materials.

The following are the basic textile materials:

- silk,

- wool,

- coarse animal hair,

- fine animal hair,

- horsehair,

- cotton,

- paper-making materials and paper,

- flax,

- true hemp,

- jute and other textile bast fibres,

- sisal and other textile fibres of the genus Agave,

- coconut, abaca, ramie and other vegetable textile fibres,

- synthetic man-made filaments,

- artificial man-made filaments,

- synthetic man-made staple fibres,

- artificial man-made staple fibres.

For example:

A yarn of heading No 5205 made from cotton fibres of heading No 5203 and synthetic staple fibres of heading No 5506 is a mixed yarn. Therefore, non-originating synthetic staple fibres that do not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 10 % of the yarn.

For example:

A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic yarn which does not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning) or a combination of the two may be used up to a weight of 10 % of the fabric.

For example:

Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205 and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a mixed fabric being made from yarns classified in two separate headings or if the cotton yarns used are themselves mixtures.

For example:

If the tufted textile fabric concerned had been made from cotton yarn of heading No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is accordingly a mixed product.

For example:

A carpet with tufts made from both artificial yarns and cotton yarns and with a jute backing is a mixed product because three basic textile materials are used. Thus, any non-originating materials that are at a later stage of manufacture than the rule allows may be used, provided their total weight taken together does not exceed 10 % of the weight of the textile materials in the carpet. Thus, both the jute backing and/or the artificial yarns could be imported at that stage of manufacture, provided the weight conditions are met.

6.3. In the case of fabrics incorporating 'yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped` this tolerance is 20 % in respect of this yarn.

6.4. In the case of fabrics incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of an adhesive between two films of plastic film, this tolerance is 30 % in respect of this strip.

Note 7

7.1. In the case of those textile products which are marked in the list by a footnote referring to this note, textile materials with the exception of linings and interlinings which do not satisfy the rule set out in the list in column 3 for the made-up products concerned may be used provided that they are classified in a heading other than that of the product and that their value does not exceed 8 % of the ex works price of the product.

7.2. Any non-textile trimmings and accessories or other materials used which contain textiles do not have to satisfy the conditions set out in column 3 even though they fall outside the scope of Note 4.3.

7.3. In accordance with Note 4.3, any non-originating non-textile trimmings and accessories or other product, which do not contain any textiles, may, anyway, be used freely where they cannot be made from the materials listed in column 3.

For example:

If a rule in the list says that for a particular textile item, such as a blouse, yarn must be used, this does not prevent the use of metal items, such as buttons, because they cannot be made from textile materials.

7.4. Where a percentage rule applies, the value of trimmings and accessories must be taken into account when calculating the value of the non-originating materials incorporated.

ANNEX II

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

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ANNEX III

MOVEMENT CERTIFICATES EUR.1

1. Movement certificates EUR.1 shall be made out on the form of which a specimen appears in this Annex.

This form shall be printed in one or more of the languages in which the Agreement is drawn up. Certificates shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State. If they are handwritten, they shall be completed in ink and in capital letters.

2. Each certificate shall measure 210 × 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

3. The competent authorities of the Member States of the Community and of Bulgaria may reserve the right to print the certificates themselves or may have them printed by approved printers. In the latter case each certificate must include a reference to such approval. Each certificate must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

MOVEMENT CERTIFICATE

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APPLICATION FOR A MOVEMENT CERTIFICATE

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DECLARATION BY THE EXPORTER

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ANNEX IV

FORM EUR.2

1. Form EUR.2 shall be made out on the form of which a specimen appears in this Annex. This form shall be printed in one or more of the languages in which the Agreement is drawn up. Forms shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State. If they are handwritten, they shall be completed in ink and in capital letters.

2. Each form EUR.2 shall measure 210 × 148 mm; a maximum tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 64 g/m2.

3. The competent authorities of the Member States of the Community and of Bulgaria may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

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ANNEX V

Specimen impression of the stamp mentioned in Article 15 (3) (b)

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ANNEX VI

LIST OF PRODUCTS REFERRED TO IN ARTICLE 34 WHICH ARE TEMPORARILY EXCLUDED FROM THE SCOPE OF THIS PROTOCOL

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PROTOCOL 5

CHAPTER I Specific provisions relating to trade between Spain and Bulgaria

Article 1

The provisions of the Agreement relating to trade in Title II shall be amended as follows in order to take account of the measures and undertakings listed in the Act of Accession of the Kingdom of Spain to the European Communities (hereinafter called 'the Act of Accession`) .

Article 2

Under the Act of Accession, Spain shall not grant to products originating in Bulgaria more favourable treatment than it provides for imports originating or in free circulation in other Member States.

Article 3

1. Duties applied by the Kingdom of Spain to agricultural products as defined in Article 13 of the Agreement originating in Bulgaria and listed in Annexes XI and XIII of the Agreement shall be progressively aligned with those applied by the Community of Ten in accordance with the procedure and timetables set out in Articles 75 (2) and (3) of the Act of Accession.

2. Levies applied by the Kingdom of Spain to agricultural products reffered to in Article 15 (2) of the Agreement originating in Bulgaria and listed in Annex XI, and to the agricultural component of products referred to in Protocol 3 originating in Bulgaria, will be the levies applied each year by the Community of Ten adjusted by the accession compensatory amounts as set out in the Act of Accession.

Article 4

The implementation by Spain of the undertakings covered by Article 4 (4) of the Agreement shall take place at the time set for the remaining Member States always provided that Bulgaria has been removed from the scope of Regulations (EEC) No 1765/82 and (EEC) No 3420/83 on import arrangements for products originating in State-trading countries.

Article 5

Quantitative restrictions may be applied to imports into Spain of products originating in Bulgaria until 31 December 1995 in respect of the products listed in Annex A.

Article 6

Application of the provisions of this Protocol shall be without prejudice to Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands or Council Decision 91/314/EEC of 26 June 1991 setting up a programme of options specific to the remote and insular nature of the Canary Islands (Poseican).

CHAPTER II Specific provisions relating to trade between Portugal and Bulgaria

Article 7

The provisions of the Agreement relating to trade in Title II shall be amended as follows in order to take account of the measures and undertakings listed in the Act of Accession of the Portuguese Republic to the European Communities (hereinafter called 'the Act of Accession`).

Article 8

Under the Act of Accession Portugal shall not grant Bulgaria more favourable treatment than is provided for imports originating in other Member States.

Article 9

1. The duties applicable by the Portuguese Republic to industrial products originating in Bulgaria and referred to in Article 4 of the Agreement and in Protocols 1 and 2 and to the non-agricultural components of products included in Protocol 3 shall be phased out according to the procedure and timetables set forth in this Article.

2. Tariff dismantling shall take as its basic starting point the duties actually applied by the Portuguese Republic in its trade with the Community of Ten on 1 January 1985; from the entry into force of the Agreement, duties shall be aligned on those applied by the Community of Ten.

However, for products referred to in Annex XXXI of the Act of Accession tariff dismantling shall be carried out according to the same timetable and start from the duties actually applied by the Portuguese Republic in its trade with third countries on 1 January 1985.

Article 10

1. The duties applied by the Portuguese Republic to agricultural products as defined in Article 13 of the Agreement originating in Bulgaria and listed in Annexes XII and XIII of the Agreement shall be progressively aligned with those applied by the Community of Ten in accordance with the procedure and timetables set out below in this Article.

2. For agricultural products other than those referred to in paragraph 3 of this Article the Portuguese Republic shall reduce its tariffs from those actually applied by it in its trade with third countries on 1 January 1985. Each year the difference between those and those applied by the Community of Ten shall be reduced in accordance with the following timetable:

- from entry into force of the Agreement, the difference shall be reduced to 27,2 % of the original difference,

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

- on 1 January 1995, the difference shall be reduced to 9 % of the original difference,

- from 1 January 1996, the Portuguese Republic shall apply the same duties as the Community of Ten.

3. The Portuguese Republic shall apply a duty to the agricultural products referred to in Regulations (EEC) No 136/66, (EEC) No 804/68, (EEC) No 805/68, (EEC) No 1035/72, (EEC) No 2727/75, (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75, (EEC) No 1418/76 and (EEC) No 822/87, which reduces the difference between the duty actually applied on 31 December 1990 and the preferential duty in accordance with the following timetable:

- from the entry into force of the Agreement, 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.

Portugal shall apply preferential rates in full from 1 January 1996.

Article 11

The implementation by Portugal of the undertakings covered by Article 4 (4) of the European Agreement shall take place at the time set for the remaining Member States always provided that Bulgaria has been removed from the scope of Regulations (EEC) No 1765/82 and (EEC) No 3420/83 on import arrangements for products originating in State-trading countries.

Article 12

Quantitative restrictions may be applied to imports into Portugal of products originating in Bulgaria until 31 December 1995 in respect of the products listed in Annex B.

ANNEX A

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ANNEX B

0103 10 00

0103 91 10

0103 92 11

0103 92 19

0701 10 00

0701 90 10

0701 90 51

0701 90 59

0803 00 10

0803 00 90

0804 30 00

2204 21 10

2204 21 21

2204 21 23

2204 21 25

2204 21 29

2204 21 31

2204 21 33

2204 21 35

2204 29 10

2204 29 21

2204 29 23

2204 29 25

2204 29 29

2204 29 31

2204 29 33

2204 29 35

2204 29 39

PROTOCOL 6 on mutual assistance in customs matters

Article 1

Definitions

For the purposes of this Protocol:

(a) customs legislation: shall mean provisions applicable in the territories of the Contracting Parties governing the import, export, transit of goods and their placing under any other customs procedure, including measures of prohibition, restriction and control adopted by the said Parties;

(b) customs duties: shall mean all duties, taxes, fees or/and other charges which are levied and collected in the territories of the Contracting Parties, in application of customs legislation, but not including fees and charges which are limited in amount to the approximate costs of services rendered;

(c) applicant authority: shall mean a competent administrative authority which has been appointed by a Contracting Party for this purpose and which makes a request for assistance in customs matters;

(d) requested authority: shall mean a competent administrative authority which has been appointed by a Contracting Party for this purpose and which receives a request for assistance in customs matters;

(e) contravention: shall mean any violation of the customs legislation as well as any attempted violation of such legislation.

Article 2

Scope

1. The Contracting Parties shall assist each other, in the manner and under the conditions laid down in this Protocol, in ensuring that customs legislation is correctly applied, in particular by the prevention, detection and investigation of contraventions of this legislation.

2. Assistance in customs matters, as provided for in this Protocol, applies to any administrative authority of the Contracting Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of the judicial authority, unless those authorities so agree.

Article 3

Assistance on request

1. At the request of the applicant authority, the requested authority shall furnish it with all relevant information to enable it to ensure that customs legislation is correctly applied, including information regarding operations noted or planned which contravene or would contravene such legislation.

2. At the request of the applicant authority, the requested authority shall inform it whether goods exported from the territory of one of the Contracting Parties have been properly imported into the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.

3. At the request of the applicant authority, the requested authority shall take the necessary steps to ensure that a surveillance is kept on:

(a) natural or legal persons of whom there are reasonable grounds for believing that they are contravening or have contravened customs legislation;

(b) movement of goods notified as possibly giving rise to substantial contraventions of customs legislation;

(c) means of transport for which there are reasonable grounds for believing that they have been, are or may be used in the contravening of customs legislation.

Article 4

Spontaneous assistance

The Contracting Parties shall within their competences provide each other with assistance if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information pertaining to:

- operations which have contravened, contravene or would contravene such legislation and which may be of interest to other Contracting Parties,

- new means or methods employed in realizing such operations,

- goods known to be subject to substantial contravention of customs legislation on import, export, transit or any other customs procedure.

Article 5

Delivery/Notification

At the request of the applicant authority, the requested authority shall in accordance with its legislation take all necessary measures in order:

- to deliver all documents,

- to notify all decisions,

falling within the scope of this Protocol to an addressee, residing or established in its territory. In such a case Article 6 (3) is applicable.

Article 6

Form and substance of requests for assistance

1. Requests pursuant to the present Protocol shall be made in writing. Documents necessary for the execution of such requests shall accompany the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

2. Requests pursuant to paragraph 1 of this Article shall include the following information:

(a) the applicant authority making the request;

(b) the measure requested;

(c) the object of and the reason for the request;

(d) the laws, rules, and other legal elements involved;

(e) indications as exact and comprehensive as possible on the natural or legal persons being the target of the investigations;

(f) a summary of the relevant facts, except in cases provided for in Article 5.

3. Requests shall be submitted in an official language of the requested authority or in a language acceptable to such authority.

4. If a request does not meet the formal requirements, its correction or completion may be demanded; the ordering of precautionary measures may, however, take place.

Article 7

Execution of requests

1. In order to comply with a request for assistance, the requested authority or, when the latter cannot act on its own, the administrative department to which the request has been addressed by this authority, shall proceed, within its competence and available resources, as though it were acting on its own account or at the request of other authorities of that same Contracting Party, by supplying information already possessed, by carrying out appropriate enquiries or by arranging for them to be carried out.

2. Requests for assistance will be executed in accordance with the laws, rules, and other legal instruments of the requested Contracting Party.

3. Duly authorized officials of a Contracting Party may, with the agreement of the other Contracting Party involved and within the conditions laid down by the latter, obtain from the offices of the requested authority or other authority for which the requested authority is responsible, information relating to the contravention of customs legislation which the applicant authority needs for the purposes of this Protocol.

4. Officials of a Contracting Party may, with the agreement of the other Contracting Party, be present at enquiries carried out in the latter's territory.

Article 8

Form in which information is to be communicated

1. The requested authority shall communicate results of enquiries to the applicant authority in the form of documents, certified copies of documents, reports and the like.

2. The documents provided for in paragraph 1 may be replaced by computerized information produced in any form for the same purpose.

Article 9

Exceptions to the obligation to provide assistance

1. The Contracting Parties may refuse to give assistance as provided for in this Protocol, where to do so would:

(a) be likely to prejudice sovereignty, public policy (l'ordre public), security or other essential interests; or

(b) involve currency or tax regulations other than regulations concerning customs duties; or

(c) violate an industrial, commercial or professional secret.

2. Where the applicant authority asks for assistance which it would itself be unable to provide if so asked, it shall draw attention to that fact in its request. It shall then be left to the requested authority to decide how to respond to such a request.

3. If assistance is withheld or denied, the decision and the reasons therefor must be notified to the applicant authority without delay.

Article 10

Obligation to observe confidentiality

1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential nature. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended under the relevant laws applicable in the Contracting Party which received it and the corresponding provisions applying to the Community authorities.

2. Nominative data shall not be transmitted whenever there are reasonable grounds to believe that the transfer or the use made of the data transmitted would be contrary to the basic legal principles of one of the Parties, and, in particular, if the person concerned would suffer undue disadvantages. Upon request, the receiving Party shall inform the furnishing Party of the use made of the information supplied and of the results achieved.

3. Nominative data may only be transmitted to customs authorities and, in the case of need for prosecution purposes, to public prosecution and judicial authorities. Other persons or authorities may obtain such information only upon previous authorization by the furnishing authority.

4. The furnishing Party shall verify the accuracy of the information to be transferred. Whenever it appears that the information supplied was inaccurate or to be deleted, the receiving Party shall be notified without delay. The latter shall be obliged to carry out the correction or deletion.

5. Without prejudice to cases of prevailing public interest, the person concerned may obtain, upon request, information on the data stores and the purpose of this storage.

Article 11

Use of information

1. Information obtained shall be used solely for the purposes of this Protocol and may be used within each Contracting Party for other purposes only with the prior written consent of the administrative authority which furnished the information and shall be subject to any restrictions laid down by that authority. These provisions are not applicable to information concerning offences relating to narcotic drugs and psychotropic substances. Such information may be communicated to other authorities directly involved in the combating of illicit drug traffic, within the limits of Article 2.

2. Paragraph 1 shall not impede the use of information in any judicial or administrative proceedings subsequently instituted for failure to comply with customs legislation.

3. The Contracting Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Protocol.

Article 12

Experts and witnesses

An official of a requested authority may be authorized to appear, within the limitations of the authorization granted, as expert or witness in judicial or administrative proceedings regarding the matters covered by this Protocol in the jurisdiction of another Contracting Party, and produce such objects, documents or authenticated copies thereof, as may be needed for the proceedings. The request for an appearance must indicate specifically on what matter and by virtue of what title or qualification the official will be questioned.

Article 13

Assistance expenses

The Contracting Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses and to interpreters and translators who are not dependent upon public services.

Article 14

Implementation

1. The management of this Protocol shall be entrusted to the central customs authorities of Bulgaria on the one hand, and the competent services of the Commission and, where appropriate, the customs authorities of the Community Member States on the other. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration rules in the field of data protection. They may recommend to the competent bodies amendments which they consider should be made to this Protocol.

2. The Contracting Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Article.

Article 15

Complementarity

1. This Protocol shall complement and not impede application of any agreements on mutual assistance which have been concluded or may be concluded between individual or several Community Member States and Bulgaria. Nor shall it preclude more extensive mutual assistance granted under such agreements.

2. Without prejudice to Article 11, these agreements do not prejudice Community provisions governing the communication between the competent services of the Commission and the customs authorities of the Member States of any information obtained in customs matters which could be of Community interest.

PROTOCOL 7 on concessions with annual limits

The Parties agree that if the Agreement comes into force after 1 January in any year, any concession given within the limits of annual quantities will be adjusted pro rata with the exception of those Community concessions contained in Annexes III and XI.

In respect of Annexes III and XI, products for which import certificates have been issued under the EEC Council Regulations applying generalized tariff preferences between 1 January and the entry into force of the Agreement will be counted against the tariff quota or tariff ceiling quantities contained in such Annexes.

FINAL ACT

The plenipotentiaries of the 'EUROPEAN ECONOMIC COMMUNITY` and the 'EUROPEAN COAL AND STEEL COMMUNITY`, hereinafter referred to as 'the Community`,

of the one part, and

the plenipotentiaries of 'THE REPUBLIC OF BULGARIA`, hereinafter referred to as 'Bulgaria`,

of the other part,

meeting at Brussels, on eighth day of March in the year one thousand nine hundred and ninety-three for the signature of the 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 Bulgaria, of the other part, hereinafter referred to as 'the Agreement`, have adopted the following texts:

the Agreement and the following Protocols:

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The plenipotentiaries of the Community and the plenipotentiaries of Bulgaria have adopted the texts of the joint declarations listed below and annexed to this Final Act:

Joint Declaration on Article 2 (3) of the Agreement,

Joint Declaration on Article 2 (4) of the Agreement,

Joint Declaration on Article 4 (3) of the Agreement,

Joint Declaration on Article 15 (4) of the Agreement,

Joint Declaration on Article 15 (4) of the Agreement,

Joint Declaration on Article 34 of the Agreement,

Joint Declaration on Article 37 of the Agreement,

Joint Declaration on Protocol 1 to the Agreement,

Joint Declaration on Article 5 and 9 (4) of Protocol 2 to the Agreement,

Joint Declaration on Protocol 4 to the Agreement,

Joint Declaration on Article 5 of Protocol 6 to the Agreement.

The plenipotentiaries of the Community and the plenipotentiaries of Bulgaria have also taken note of the following exchanges of letters annexed to this Final Act:

Agreement in the form of an exchange of letters concerning transit,

Agreement in the form of an exchange of letters concerning inland transport infrastructure,

Agreement in the form of an exchange of letters concerning certain provisions applicable to live bovine animals,

Agreement in the form of an exchange of letters concerning certain provisions applying to pigs and poultry,

Agreement in the form of an exchange of letters concerning the recognition of regionalization of African swine fever in the Kingdom of Spain.

The plenipotentiaries of Bulgaria have taken note of the declarations listed below and annexed to this Final Act:

Community Declaration on Article 15 (4) of the Agreement,

Community Declaration on Article 15 (4) of the Agreement,

Community Declaration on Article 2 (3) of Protocol 1 to the Agreement,

Community Declaration on Article 9 (1) (iii) and (4) of Protocol 2 to the Agreement,

Community Declaration on Article 9 (4) of Protocol 2 to the Agreement.

The plenipotentiaries of the Community have taken note of the declarations listed below and annexed to this Final Act:

Declaration by Bulgaria concerning Article 8 (3) of the Agreement,

Declaration by Bulgaria concerning Article 15 (3) of the Agreement,

Declaration by Bulgaria concerning Article 37 of the Agreement,

Declaration by Bulgaria concerning Article 37 of the Agreement,

Declaration by Bulgaria concerning Protocol 2 to the Agreement,

Declaration by Bulgaria concerning Protocol 3 to the Agreement.

Hecho en Bruselas, el ocho de marzo de mil novecientos noventa y tres.

Udfærdiget i Bruxelles, den ottende marts nitten hundrede og treoghalvfems.

Geschehen zu Brüssel am achten März neunzehnhundertdreiundneunzig.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò ïêôþ Ìáñôßïõ ÷ßëéá åííéáêüóéá åííåíÞíôá ôñßá.

Done at Brussels on the eighth day of March in the year one thousand nine hundred and ninety-three.

Fait à Bruxelles, le huit mars mil neuf cent quatre-vingt-treize.

Fatto a Bruxelles, addì otto marzo millenovecentonovantatré.

Gedaan te Brussel, de achtste maart negentienhonderd drieënnegentig.

Feito em Bruxelas, em oito de Março de mil novecentos e noventa e três.

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Por el Consejo y la Comisión de las Comunidades Europeas

For Rådet og Kommissionen for De Europæiske Fællesskaber

Für den Rat und die Kommission der Europäischen Gemeinschaften

Ãéá ôï Óõìâïýëéï êáé ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùí

For the Council and the Commission of the European Communities

Pour le Conseil et la Commission des Communautés européennes

Per il Consiglio e la Commissione delle Comunità europee

Voor de Raad en de Commissie van de Europese Gemeenschappen

Pelo Conselho e pela Comissão das Comunidades Europeias

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Por la República de Bulgaria

For Republikken Bulgarien

Für die Republik Bulgarien

Ãéá ôç Äçìïêñáôßá ôçò Âïõëãáñßáò

For the Republic of Bulgaria

Pour la République de Bulgarie

Per la Repubblica di Bulgaria

Voor de Republiek Bulgarije

Pela República da Bulgária

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JOINT DECLARATIONS

1. Article 2 (3)

The Parties declare that the expression 'duties actually applied` means as regards Bulgaria the MFN rate of duty applied (customs duties and in the case of products listed in Annex VIII charges having an equivalent effect to customs duties) and as regards the Community the duties listed in the customs tariff (autonomous, conventional, as well as the 'permanent` tariff suspensions and quotas that are shown therein). Where, however, temporary duty suspensions are applied by reason of a specific purpose, or for specific quantities or consignments, such suspensions shall not be considered as 'duties actually applied`. The Parties shall inform each other on the day preceding the date of entry into force of the Agreement of the list of products subject to such temporary duty suspensions.

2. Article 2 (4)

The Community and Bulgaria confirm that where a reduction of duties is effected by way of a suspension of duties made for a particular period of time, such reduced duties shall replace the basic duties only for the period of such suspension, and that whenever a partial suspension of duties is made, the preferential margin between the Parties will be preserved.

3. Article 4 (3), second paragraph

The Parties declare that the reduced duties calculated in accordance with the provisions of this Agreement, are to be rounded off to the first decimal place by rounding up, when the second decimal place is 5, 6, 7, 8 or 9, and rounding down, when it is 0, 1, 2, 3 or 4.

4. Article 15 (4)

The Community and Bulgaria, pending the conclusion of the Uruguay Round negotiations in the framework of the General Agreement on Tariffs and Trade and extending for one year the 1990 Agreement, agree to enter into negotiations during the second half of 1993 to reach a mutually agreeable solution on the extension of the 1990 Agreement on sheep and sheepmeat especially on:

- the respect of the sensitive periods,

- the suspension of the duty,

- the price surveillance procedure.

5. Article 15 (4)

The Community and Bulgaria agree to negotiate in the interest of concluding:

- an Agreement between the Republic of Bulgaria and the European Economic Community on the reciprocal protection of the names of wines and control of wine,

- an Agreement regarding the establishment of reciprocal tariff concessions for wines providing that these observe the Community's and Bulgaria's import regulations, particularly in the area of oenological practices and certificates.

Both Parties shall make best efforts to ensure that these Agreements enter into force at the same time as the Interim Agreement.

6. Article 34

The Parties shall not make an improper use of provisions on professional secrecy to prevent the disclosure of information in the field of competition.

7. Article 37

The Parties agree that for the purpose of this Interim Agreement 'intellectual, industrial and commercial property` is to be given a similar meaning as in Article 36 of the EEC Treaty and includes in particular protection of copyright and neighbouring rights, patents, industrial designs, trade marks and service marks, topographies of integrated circuits, software, geographical indications as well as protection against unfair competition and protection of undisclosed information of know-how.

8. Protocol 1 to the Agreement

The Parties confirm their intention to start negotiating the new Protocol on quantitative arrangements provided for in Article 3 (2) of Protocol 1 before the end of 1992.

9. Articles 5 and 9 (4) of Protocol 2 to the Agreement

The Community and Bulgaria declare that Articles 5 and 9 (4) of Protocol 2 cannot be considered as a precedent in Bulgaria's negotiations for accession to the General Agreement on Tariffs and Trade or to the Multilateral Trade Organization which could emerge from the Uruguay Round negotiations.

10. Protocol 4 to the Agreement

The Community and Bulgaria confirm their readiness to consider at a later stage in the Association Council the possibility of regional cumulation with Poland, Hungary and Czechoslovakia, and with Romania, in the light of progress made in fulfilling the appropriate technical and administrative conditions.

11. Article 5 of Protocol 6 to the Agreement

The Contracting Parties stress that the reference which is made in Article 5 of Protocol 6 to their own legislation may cover, where appropriate, an international commitment they could have contracted, such as the Convention on the service abroad of judicial and extrajudicial documents in civil or commercial matters, concluded in The Hague on 15 November 1965.