EUROPE AGREEMENT establishing an association between the European Communities and their Member States, acting within the framework of the European Union, of the one part, and the Republic of Slovenia, of the other part

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Atomic Energy Community, and the Treaty on European Union, hereinafter referred to as 'Member States`, and

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

acting within the framework of the European Union,

of the one part, and

THE REPUBLIC OF SLOVENIA, hereinafter referred to as 'Slovenia`,

of the other part,

CONSIDERING the importance of the established links existing between the parties and the common values that they share;

RECOGNISING that the Community and Slovenia wish to strengthen those links and to establish close and lasting relations, based on reciprocity and shared interests, which would allow Slovenia to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Cooperation Agreement and the Protocol on financial cooperation between the European Economic Community and the Republic of Slovenia signed on 5 April 1993, which entered into force on 1 September 1993 and the Agreement between the Member States of the European Coal and Steel Community and the European Coal and Steel Community, of the one part, and the Republic of Slovenia, of the other part, signed on 5 April 1993;

CONSIDERING that the relationship between the parties in the field of inland transport should continue to be governed by the Agreement between the European Economic Community and the Republic of Slovenia in the field of transport, signed on 5 April 1993, which entered into force on 29 July 1993;

CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in Slovenia;

CONSIDERING the commitment of the parties to strengthening the political and economic freedoms which constitute the very basis of the Association;

RECOGNISING the establishment in Slovenia of a new political order which respects the rule of law and human rights, including the rights of persons belonging to minorities, and operates a multi-party system with free and democratic elections;

ACKNOWLEDGING the readiness of the Community to contribute to the strengthening of this new democratic order as well as to support the creation in Slovenia of a new economic order founded upon the principles of a free market economy;

CONSIDERING the firm commitment of the parties to the full implementation of all principles and provisions of CSCE process contained in particular in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the Helsinki document 1992 and the Budapest Summit 1994 and the Charter of Paris for a New Europe;

CONSCIOUS of the importance of this Europe Agreement, hereinafter referred to as the 'Agreement`, for establishing in Europe a system of stability based on cooperation, with the European Union as one of the cornerstones;

BELIEVING that a link should be made between full implementation of association on the one hand and the actual accomplishment of Slovenia's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the rapprochement between the parties' systems, notably in the light of the conclusions of the CSCE Bonn Conference;

DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest;

RECOGNISING the contribution which the Pact on Stability in Europe can make to promoting stability and good neighbourly relations in the region and conforming their determination to work together for the success of this initiative;

TAKING ACCOUNT of the Community's willingness to provide decisive support for the implementation of reform and to help Slovenia cope with the economic and social consequences of structural readjustment;

TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a comprehensive and multiannual basis;

CONSIDERING the commitment of the parties to free trade, based on the principles set out in General Agreement on Tariffs and Trade 1994, hereinafter referred to as the 'GATT 1994`, as amended by the Uruguay Round trade negotiations, and taking account of the establishment of the World Trade Organization, hereinafter referred to as the 'WTO`;

CONSIDERING the commitment of the Community and Slovenia to the principles set out in the European Energy Charter of 17 December 1991 and in the Final Statement of the Lucerne Conference of April 1993;

BEARING IN MIND the economic and social disparities between the Community and Slovenia and thus recognising that the objectives of this Association should be reached through appropriate provisions of this Agreement;

RECALLING the objectives of the Agreements signed at Osimo in November 1975 by the Italian Republic and the Socialist Federal Republic of Yugoslavia and succeeded to by the Republic of Slovenia, and in particular of the Agreement on the promotion of the economic cooperation between the two countries;

CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernisation in Slovenia;

DESIROUS of establishing cultural cooperation and developing exchanges of information;

RECOGNISING the fact that Slovenia's ultimate objective is to accede to the European Union, and that this Association, in the view of the parties, will help Slovenia to achieve this objective;

TAKING INTO ACCOUNT the accession preparations strategy adopted by the Essen European Council of December 1994, which is being politically implemented by the creation, between the associated States and the Institutions of the European Union, of structured relations which encourage mutual trust and will provide a framework for addressing topics of common interest,

HAVE AGREED AS FOLLOWS:

Article 1

1. An Association is hereby established between the Community and its Member States of the one part and Slovenia of the other part.

2. The aims of this Association are:

- to provide an appropriate framework for political dialogue, allowing the development of close political relations between the parties;

- to promote the expansion of trade and harmonious economic relations between the parties and so foster dynamic economic development and prosperity in Slovenia;

- gradually to develop a free trade area covering virtually all trade between the Community and Slovenia;

- to support Slovenia's efforts to develop its economy and to complete the transition into a market economy;

- to provide an appropriate framework for Slovenia's gradual integration into the European Union. To this end, Slovenia shall work towards fulfilling the necessary conditions.

TITLE I GENERAL PRINCIPLES

Article 2

Respect for the democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Cooperation, shall form the basis of the domestic and external policies of the parties and constitute essential elements of this Agreement.

Article 3

1. The Association shall include a transitional period of a maximum duration of six years divided into two successive stages, the first in principle lasting four years, the second two. The first stage shall begin upon the entry into force of this Agreement.

2. The Association Council established under Article 110 shall regularly examine the application of this Agreement and the accomplishment of Slovenia's economic reforms on the basis of the principles established in the preamble.

3. During the course of the twelve months preceding the expiry of the first stage, the Association Council shall meet to decide on the transition to the second stage as well as on any possible changes to be brought about as regards the content of the provisions governing the second stage. In so doing, it will take into account the results of the examination referred to in paragraph 2.

4. The two stages envisaged in paragraphs 1, 2 and 3 shall not apply to Title III.

TITLE II POLITICAL DIALOGUE

Article 4

The political dialogue between the European Union and Slovenia shall be further developed and intensified. It shall accompany and consolidate the rapprochement between the European Union and Slovenia, support the political and economic changes underway in that country or already realised, and contribute to the establishment of close links of solidarity and new forms of cooperation between the parties. The political dialogue is intended to promote in particular:

- Slovenia's full integration into the Community of democratic nations and its progressive rapprochement with the European Union;

- an increasing convergence of positions of the parties on international issues and, in particular, on those issues likely to have substantial effects on the parties;

- better cooperation in areas covered by the Common Foreign and Security Policy of the European Union;

- common views on security and stability in Europe.

Article 5

Political dialogue shall take place within the multilateral framework and in accordance with the forms and practices established with the associated countries of central Europe.

Article 6

1. At ministerial level, political dialogue shall take place within the Association Council, which shall have the general responsibility for any matter which the parties might wish to put to it.

2. With the agreement of the parties, other procedures for political dialogue shall be established in particular:

- meetings, where necessary, of senior officials (at the level of political directors) representing Slovenia, on the one hand, and the Presidency of the Council of the European Union and the Commission, on the other;

- taking full advantage of all diplomatic channels between the parties, including appropriate contacts in third countries and within the United Nations, the OSCE and other international fora;

- including Slovenia in the group of countries receiving regular information on the activities managed within the framework of the Common Foreign and Security Policy as well as exchanging information with a view to achieving the objectives defined in Article 4;

- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.

Article 7

Political dialogue at parliamentary level may take place within the framework of the Association Parliamentary Committee established under Article 116.

TITLE III FREE MOVEMENT OF GOODS

Article 8

1. The Community and Slovenia shall gradually establish a free trade area in a transitional period lasting a maximum of six years starting from the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and the WTO.

2. The Combined Nomenclature of goods shall be applied to the classification of goods in trade between the two parties.

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

4. If, after entry into force of this 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 replaced the basic duty referred to in paragraph 3 as from the date when such reductions are applied.

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

CHAPTER I INDUSTRIAL PRODUCTS

Article 9

1. The provisions of this Chapter shall apply to products originating in the Community or Slovenia listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I.

2. The provisions of Articles 10 to 14 shall not apply to textile products nor to products covered by the Treaty establishing the European Coal and Steel Community, as specified in Articles 16 and 17.

3. Trade between the parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.

Article 10

1. Customs duties on imports into the Community of products originating in Slovenia other than those listed in Annex II shall be abolished upon the entry into force of this Agreement.

2. Customs duties on imports into the Community of products of Slovenian origin listed in Annex II shall be suspended within the limits of annual Community tariff ceilings increasing progressively in accordance with the conditions specified in that Annex with a view to complete abolition of customs duties on imports of the products concerned on 1 January 2000.

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

Article 11

1. Customs duties on imports into Slovenia of goods originating in the Community other than those listed in Annexes III and IV shall be abolished upon the entry into force of this Agreement.

2. Customs duties on imports into Slovenia of products originating in the Community which are listed in Annex III shall be progressively reduced in accordance with the following timetable:

- on 1 January 1996 each duty shall be reduced to 80 % of the basic duty;

- on 1 January 1997 each duty shall be reduced to 55 % of the basic duty;

- on 1 January 1998 each duty shall be reduced to 30 % of the basic duty;

- on 1 January 1999 each duty shall be reduced to 15 % of the basic duty;

- on 1 January 2000 the remaining duties shall be abolished.

3. Customs duties on imports into Slovenia of products originating in the Community which are listed in Annex IV shall be progressively reduced in accordance with the following timetable:

- on 1 January 1996 each duty shall be reduced to 90 % of the basic duty;

- on 1 January 1997 each duty shall be reduced to 70 % of the basic duty;

- on 1 January 1998 each duty shall be reduced to 45 % of the basic duty;

- on 1 January 1999 each duty shall be reduced to 35 % of the basic duty;

- on 1 January 2000 each duty shall be reduced to 20 % of the basic duty;

- on 1 January 2001 the remaining duties shall be abolished.

4. Quantitative restrictions on imports into Slovenia of goods originating in the Community and measures having equivalent effect shall be abolished upon the entry into force of this Agreement.

Article 12

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

Article 13

The Community and Slovenia shall abolish upon the entry into force of this Agreement in trade between themselves any charges having an effect equivalent to customs duties on imports.

Article 14

1. The Community shall abolish any customs duties on exports and charges having equivalent effect upon the entry into force of this Agreement.

Slovenia shall abolish customs duties on exports and charges having equivalent effect upon entry into force of this Agreement except for the products listed in Annex XII where the abolition will take place in accordance with the timetable set out in that Annex.

2. The Community and Slovenia shall abolish between themselves any quantitative restrictions on exports and measures having equivalent effect upon the entry into force of this Agreement.

Article 15

Slovenia declares its readiness to reduce its customs duties in trade with the Community more rapidly than is provided for in Article 11 if its general economic situation and the situation of the economic sector concerned so permit.

The Community declares its readiness in similar circumstances to increase further or to abolish more speedly the tariff ceilings referred to in Article 10(2).

The Association Council shall make recommendations to this effect.

Article 16

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

Article 17

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

Article 18

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

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

CHAPTER II AGRICULTURE

Article 19

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

2. The term 'agricultural products` means the products listed in Chapters 1 to 24 of the Combined Nomenclature and the products listed in Annex I, but excluding fishery products as defined by Regulation (EEC) No 3759/92.

Article 20

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

Article 21

1. The Community shall abolish on the date of entry into force of this Agreement the quantitative restrictions, and measures having equivalent effect, on imports of agricultural products originating in Slovenia.

2. From the date of entry into force of this Agreement, the Community shall apply to imports into its market of agricultural products originating in Slovenia the concessions listed in Annex VI.

3. Slovenia shall abolish quantitative restrictions, and measures having equivalent effect, on imports of agricultural products originating in the Community on the date of entry into force of this Agreement.

4. From the date of entry into force of this Agreement Slovenia shall apply to imports into Slovenia of products originating in the Community the concessions listed in Annex VII.

5. Taking account of the volume of trade in agricultural products between them, of its particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of the agricultural policy of Slovenia, and of the consequences of the multilateral trade negotiations under the GATT 1994 and WTO, the Community and Slovenia shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the opportunities for granting each other further concessions.

Article 22

Notwithstanding other provisions of this Agreement, and in particular Article 31, if, given the particular sensitivity of the agricultural markets, imports of products originating in one of the two parties, which are the subject of concessions granted pursuant to Article 21, cause serious disturbance to the markets in the other party, both parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the party concerned may take the measures it deems necessary.

CHAPTER III FISHERIES

Article 23

The provisions of this Chapter shall apply to fishery products originating in the Community or Slovenia which are covered by Regulation (EEC) No 3759/92 on the common organisation of the market in fishery and aquaculture products.

Article 24

1. The fishery products originating in Slovenia listed in Annex VIII(a) shall be subject from the date of entry into force of this Agreement to the reduced customs duties provided for in that Annex. The provisions of Articles 21 and 22 shall apply mutatis mutandis to fishery products.

2. The fishery products originating in the Community listed in Annex VIII(b) shall be subject from the date of entry into force of this Agreement to the reduced customs duties provided for in that Annex. The provisions of Articles 21 and 22 shall apply mutatis mutandis to fishery products.

CHAPTER IV COMMON PROVISIONS

Article 25

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

Article 26 Standstill

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 trade between the Community and Slovenia from the date of entry into force of this Agreement.

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

3. Without prejudice to the concessions granted under Article 21, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural policies of Slovenia and the Community or the taking of any measures under those policies in so far as the import regime in the Annexes VI and VII is not affected.

Article 27 Prohibition of fiscal discrimination

1. The 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 indirect taxation in excess of the amount of indirect taxation imposed on them.

Article 28 Customs unions, free trade areas, cross-border arrangements

1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement. This Agreement shall in particular not affect the implementation of the specific arrangements governing the movement of goods laid down in frontier agreements previously concluded between one or more Member States and the Socialist Federal Republic of Yugoslavia and succeeded to by the Republic of Slovenia.

2. Consultations between the parties shall take place within the Association Council concerning agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies towards 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 is taken of the mutual interests of the Community and Slovenia stated in this Agreement.

Article 29 Exceptional tariff measures

Exceptional measures of limited duration which derogate from the provisions of Article 11 and Article 26(1) may be taken by Slovenia 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 major social problems.

Customs duties introduced by these measures on imports into Slovenia of products originating in the Community 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.

The measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Association Council. They shall cease to apply at the latest on the expiry of the transitional period.

No such measures may 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 equivalent effect concerning that product.

Slovenia shall inform the Association Council of any exceptional measures it intends to adopt and, at the request of the Community, consultations shall be held in the Association Council on such measures and the sectors to which they apply before they are put into effect. When adopting such measures Slovenia shall provide the Association Council 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 at equal annual rates starting at the latest two years after their introduction. The Association Council may decide on a different schedule.

Article 30 Dumping

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 GATT 1994, it may take appropriate measures against this practice in accordance with the Agreement on implementation of Article VI of the GATT 1994, its own related internal legislation and the conditions and procedures laid down in Article 34.

Article 31 General safeguard clause

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

- serious injury to domestic producers of like or directly competing 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 Slovenia, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34.

Article 32 Shortage clause

Where compliance with Articles 14 and 26 leads to

- re-export to a third country of a product in respect of which the exporting party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect,

or

- a serious shortage, or threat thereof, of a product essential to the exporting party,

and where the situations described above 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 34. The measures shall be non-discriminatory and shall be abolished when conditions no longer justify their maintenance.

Article 33 State monopolies

The Member States and Slovenia shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fourth 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 Slovenia. The Association Council shall be informed about the measures adopted to attain this objective.

Article 34 Procedures

1. In the event of the Community or Slovenia subjecting imports of products liable to give rise to the difficulties referred to in Article 31 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 30, 31 and 32, before taking the measures provided for therein or, in cases to which paragraph 3(d) applies, as soon as possible, the Community or Slovenia, as the case may be, shall supply the Association Council 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 Association Council and shall be the subject of periodic consultations within that body, notably 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 31, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Council, which may take any decision needed to put an end to such difficulties.

If the Association Council or the exporting party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within thirty 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 30, the Association Council shall be informed of the instance of dumping as soon as the authorities of the importing party have initiated an investigation. Where no end has been put to the dumping within the meaning of Article VI of the GATT 1994 or no other satisfactory solution has been reached within thirty days of the matter being referred to the Association Council, the importing party may adopt the appropriate measures.

(c) As regards Article 32, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Council.

The Association Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within thirty days of the matter being referred to it, the exporting party may apply appropriate measures to the export 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 Slovenia whichever is concerned may, in the situations specified in Articles 30, 31 and 32, apply forthwith the safeguard measures strictly necessary to deal with the situation and inform the Association Council immediately.

Article 35

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

Article 36 Restrictions authorised

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 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 37

The application of this Agreement 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.

TITLE IV MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES

CHAPTER I MOVEMENT OF WORKERS

Article 38

1. Subject to the conditions and modalities applicable in each Member State:

- treatment accorded to workers of Slovenian nationality, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals;

- the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral agreements within the meaning of Article 42, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorised stay of employment.

2. Slovenia shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said territory.

Article 39

1. With a view to coordinating social security systems for workers of Slovenian nationality legally employed in the territory of a Member State and for the members of their family, legally resident there, and subject to the conditions and modalities applicable in each Member State:

- all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members;

- any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;

- the workers in question shall receive family allowances for the members of their family as defined above.

2. Slovenia shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1.

Article 40

1. The Association Council shall by decision adopt the appropriate provisions to give effect to the objectives set out in Article 39.

2. The Association Council shall by decision adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1.

Article 41

The provisions adopted by the Association Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral agreements linking Slovenia and the Member States where those agreements provide for more favourable treatment of nationals of Slovenia or of the Member States.

Article 42

1. Taking into account the labour market situation in the Member States, subject to their legislation and to compliance with rules in force in those Member States in the area of mobility of workers:

- the existing facilities for access to employment for Slovenian workers accorded by Member States under bilateral agreements should be preserved and if possible improved;

- the other Member States shall consider the possibility of concluding similar agreements.

2. The Association Council shall examine the granting of other improvements, including facilities for access to vocational training, in accordance with rules and procedures in force in the Member States, and taking account of the labour market situation in the Member States and in the Community.

Article 43

During the second stage referred to in Article 3, or earlier if so decided, the Association Council shall examine further ways of improving the movement of workers, taking into account inter alia the social and economic situation in Slovenia and the employment situation in the Community. The Association Council shall make appropriate recommendations.

Article 44

In the interest of facilitating the redeployment of labour resources resulting from economic restructuring in Slovenia, the Community shall provide technical assistance for the establishment of a suitable social security system in Slovenia as set out in Article 89.

CHAPTER II ESTABLISHMENT

Article 45

1. Slovenia shall, during the transitional period referred to in Article 3, facilitate the setting-up of operations on its territory by Community companies and nationals. To that end, it shall grant, from the entry into force of this Agreement:

(i) as regards the establishment of Community companies treatment no less favourable than that accorded to its own companies or to any third country company, whichever is the better, save for the sectors referred to in Annex IX(a), where such treatment shall be granted at the latest by the end of the transitional period referred to in Article 3 and;

(ii) as regards the operation of subsidiaries and branches of Community companies in Slovenia, once established, treatment no less favourable than that accorded to its own companies and branches or to any Slovenian subsidiary and branch of any third country company, whichever is the better.

2. Slovenia shall not, during the transitional periods referred to in paragraph 1, adopt any new regulations or measures which introduce discrimination as regards the establishment of Community companies or nationals on its territory or in respect of their operation, once established, by comparison with its own companies and nationals.

3. The Community and its Member States shall grant, from the entry into force of this Agreement:

- as regards the establishment of Slovenian companies, treatment no less favourable than that accorded by Member States to their own companies or to any company of any third country, whichever is the better;

- as regards the operation of subsidiaries and branches of Slovenian companies, established in their territory, treatment no less favourable than that accorded by Member States to their own companies and branches, or to any subsidiary and branch of any third country company, established in their territory, whichever is the better.

4. The treatment described in paragraphs 1 and 3 shall be applicable for the establishment and operation of nationals as from the end of the transitional period referred to in Article 3.

5. The provisions concerning national treatment for the establishment and operation of Community companies and nationals contained in paragraph 1 of this Article shall not apply to the areas or matters listed in Annex IX(b).

6. The Association Council shall during the transitional period referred to in paragraph 1 (i) examine regularly the possibility of accelerating the granting of national treatment in the sectors referred to in Annex IX(a) and the inclusion of areas or matters listed in Annex IX(b) within the scope of the provisions of paragraphs 1 and 3 of this Article. Amendments may be made to these Annexes by decision of the Association Council.

Following the expiry of the transitional period referred to in paragraph 1(i), the Association Council may exceptionally, at the request of Slovenia, and if the necessity arises, decide to prolong the duration of exclusion of certain areas or matters listed in Annex IX(a) for a limited period of time.

7. Notwithstanding the provisions of this Article:

(a) Community nationals and subsidiaries and branches of Community companies shall have, from the entry into force of this Agreement, the right to use and rent real property in Slovenia;

(b) subsidiaries of Community companies shall also have the right to acquire and sell real property and, as regards natural resources, agricultural land and forestry, the same rights as enjoyed by Slovenian nationals and companies, where these rights are necessary for the conduct of the economic activities for which they are established;

(c) Slovenia shall grant the rights under (b) to Community nationals and branches of Community companies by the end of the first stage of the transitional period.

Article 46

1. The provisions of this Chapter shall not apply to air transport services, inland waterway transport services and maritime cabotage transport services.

2. The Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1.

Article 47

For the purposes of this Agreement:

(a) a 'Community company` or a 'Slovenian company` respectively shall mean a company set up in accordance with the laws of a Member State or of Slovenia respectively and having its registered office or central administration or principal place of business in the territory of the Community or Slovenia respectively.

However, should the company, set up in accordance with the laws of a Member State or Slovenia respectively, have only its registered office in the territory of the Community or Slovenia respectively, the company shall be considered a Community or a Slovenian company respectively if its operations possess a real and continuous link with the economy of one of the Member States or Slovenia respectively;

(b) 'Subsidiary` of a company shall mean a company which is effectively controlled by the first company;

(c) 'Branch` of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;

(d) 'Establishment` shall mean:

(i) as regards nationals, the right to take up economic activities as self-employed persons, and to set up undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of another party. The provisions of this Chapter do not apply to those who are not exclusively self-employed;

(ii) as regards Community or Slovenian companies, the right to take up economic activities by means of the setting up of subsidiaries and branches in Slovenia or in the Community respectively;

(e) 'Operations` shall mean the pursuit of economic activities;

(f) 'Economic activities` shall in principle include activities of an industrial, commercial and professional character and activities of craftsmen;

(g) 'Community national` and 'Slovenian national` shall mean respectively a natural person who is a national of one of the Member States or of Slovenia;

(h) with regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of Slovenia established outside the Community or Slovenia respectively, and shipping companies established outside the Community or Slovenia and controlled by nationals of a Member State or Slovenian nationals respectively, shall also be beneficiaries of the provisions of this Chapter and Chapter III, if their vessels are registered in that Member State or in Slovenia respectively, in accordance with their respective legislation;

(i) 'Financial services` shall mean those activities described in Annex IX(c). The Association Council may extend or modify the scope of that Annex.

Article 48

1. Subject to the provisions of Article 45, with the exception of financial services described in Annex IX(c), each party may regulate the establishment and operation of companies and nationals on its territory, in so far as these regulations do not discriminate against companies and nationals of the other party in comparison with its own companies and nationals.

2. In respect of financial services, notwithstanding any other provisions of this Agreement, a party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owned by a financial service supplier, or to ensure the integrity and stability of the financial system. Such measures shall not be used as a means of avoiding the party's obligations under the Agreement.

3. Nothing in the Agreement shall be construed to require a party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

Article 49

1. The provisions of Articles 45 and 48 do not preclude the application by a party of particular rules concerning the establishment and operation in its territory of branches of companies of another party not incorporated in the territory of the first party, which are justified by legal or technical differences between such branches as compared to branches of companies incorporated in its territory or, as regards financial services, for prudential reasons.

2. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.

Article 50

1. A Community company or a Slovenian company established in the territory of Slovenia or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of Slovenia and the Community respectively, employees who are nationals of the Community Member States and Slovenia respectively, provided that such employees are key personnel as defined in paragraph 2 and that they are employed exclusively by companies, subsidiaries or branches.

The residence and work permits of such employees shall only cover the period of such employment.

2. Key personnel of the abovementioned companies herein referred to as 'organisations` are 'intra-corporate transferees` as defined in (c) of this paragraph in the following categories, provided that the organisation is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:

(a) Persons working in a senior position with an organisation, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent including:

- directing the establishment of a department or sub-division of the establishment;

- supervising and controlling the work of other supervisory, professional or managerial employees;

- having the authority personally to recruit and dismiss or recommend recruiting, dismissing or other personnel actions;

(b) Persons working within an organisation who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;

(c) An 'intra-corporate transferee` is defined as a natural person working within an organisation in the territory of a party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other party; the organisation concerned must have its principal place of business in the territory of a party and the transfer be to an establishment (branch, subsidiary) of that organisation, effectively pursuing like economic activities in the territory of the other party.

3. The entry into and the temporary presence within the territory if the Community or Slovenia of Slovenian and Community nationals respectively shall be permitted, when these representatives of companies are persons working in a senior position, as defined in paragraph 2(a) above, within a company, and are responsible for the setting up of a Community subsidiary or branch of a Slovenian company or of a Slovenian subsidiary or branch of a Community company in a Community Member State or Slovenia respectively, when:

- those representatives are not engaged in making direct sales or supplying services, and

- the company has its principal place of business outside the Community or Slovenia, respectively, and has no other representative, office, branch or subsidiary in that Community Member State or Slovenia respectively.

Article 51

In order to make it easier for Community nationals and Slovenian nationals to take up and pursue regulated professional activities in Slovenia and the Community respectively, the Association Council shall examine which steps are necessary for the mutual recognition of qualifications. It may take all necessary measures to that end.

Article 52

During the first four years following the date of entry into force of this Agreement, or for the sectors referred to in Annex IX(a), during the transitional period referred to in Article 3, Slovenia may introduce measures which derogate from the provisions of this Chapter as regards the establishment of Community companies and nationals of certain industries:

- are undergoing restructuring, or

- are facing serious difficulties, particularly where these entail serious social problems in Slovenia, or

- face the elimination or a drastic reduction of the total market share held by Slovenian companies or nationals in a given sector or industry in Slovenia, or

- are newly emerging industries in Slovenia.

Such measures:

(i) shall cease to apply at the latest two years after the expiry of the fourth year following the date of entry into force of this Agreement or, for the sectors included in Annex IX(a), upon the expiry of the transitional period referred to in Article 3, and

(ii) shall be reasonable and necessary in order to remedy the situation, and

(iii) shall relate only to establishments in Slovenia to be set up after the entry into force of such measures and shall not introduce discrimination concerning the activities of Community companies or nationals already established in Slovenia at the time of introduction of a given measure, by comparison with Slovenian companies or nationals.

The Association Council may exceptionally, at the request of Slovenia, and if the necessity arises, decide to prolong the periods referred to in (i) above for a given sector for a limited period of time.

While devising and applying such measures, Slovenia shall grant preferential treatment wherever possible to Community companies and nationals, and in no case treatment less favourable than that accorded to companies or nationals from any third country.

Prior to the adoption of these measures, Slovenia shall consult the Association Council and shall not put them into effect before a one month period has elapsed following the notification to the Association Council of the concrete measures to be introduced by Slovenia, except where the threat of irreparable damage requires the taking of urgent measures, in which case Slovenia shall consult the Association Council immediately after their adoption.

Upon the expiry of the fourth year following the entry into force of this Agreement or, for the sectors included in Annex IX(a), upon the expiry of the transitional period referred to in Article 3, Slovenia may introduce such measures only with the authorisation of the Association Council and under conditions determined by the latter.

CHAPTER III SUPPLY OF SERVICES BETWEEN THE COMMUNITY AND SLOVENIA

Article 53

1. The parties undertake in accordance with the following provisions to take the necessary steps to allow progressively the supply of services by Community or Slovenian companies or nationals which are established in a party other than that of the person for whom the services are intended.

2. In step with the liberalization process mentioned in paragraph 1, and subject to the provisions of Article 57(1), the parties shall permit the temporary movement of natural persons providing the service or who are employed by the service provider as key personnel as defined in Article 50(2), including natural persons who are representatives of a Community or Slovenian company or national and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service provider, where those representatives will not be engaged in making direct sales to the general public or in supplying services themselves.

3. At the latest eight years after the entry into force of this Agreement, the Association Council shall take the measures necessary to implement progressively the provisions of paragraph 1. Account shall be taken of the progress achieved by the parties in the approximation of their laws.

Article 54

1. The parties shall not take any measures or actions which render the conditions for the supply of services by Community and Slovenian nationals or companies which are established in a party other than that of the person for whom the services are intended significantly more restrictive as compared to the situation existing on the day preceding the day of entry into force of the Agreement.

2. If one party is the view that measures introduced by the other party since the signature of the Agreement result in a situation which is significantly more restrictive in respect of supply of services as compared with the situation existing at the date of signature of the Agreement, such first party may request the other party to enter into consultations.

Article 55

With regard to supply of transport services between the Community and Slovenia, the following shall apply without prejudice to the provisions of Article 53:

1. With regard to inland transport, the relationship between the parties is governed by the Agreement between the European Economic Community and the Republic of Slovenia in the field of transport, signed on 5 April 1993. The parties confirm the importance they attach to the correct application of this Agreement, and underline the particular importance of the freedom of road transit traffic, as defined in the Agreement, without prejudice to the conditions regulating transit through Austria following Austria's accession to the European Union, of non-discrimination and of harmonisation of the Slovenian transport legislation with that of the Community.

2. With regard to international maritime transport the parties undertake to apply effectively the principle of unrestricted access to the market and traffic on a commercial basis.

(a) The above provision does not prejudice the rights and obligations under the United Nations Code of Conduct for Liner Conferences, as applied by one or the other party to this Agreement. Non-conference liners will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis.

(b) The parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.

3. In applying the principles of point 2, the parties shall:

(a) not introduce cargo-sharing clauses in future bilateral agreements with third countries, other than in those exceptional circumstances where liner shipping companies from one or other party to this Agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;

(b) prohibit cargo-sharing arrangements in future bilateral agreements concerning dry and liquid bulk trade;

(c) abolish, upon the entry into force of this Agreement, all unilateral measures and administrative, technical and other obstacles which could have restrictive or discriminatory effects on the free supply of services in international maritime transport.

4. With a view to ensuring a coordinated development and progressive liberalization of transport between the parties adapted to their reciprocal commercial needs, the conditions of mutual market access in air transport shall be dealt with by special agreement to be negotiated between the parties after the entry into force of this Agreement.

5. Prior to the conclusion of the agreement referred to in point 4, the parties shall not take any measures or actions which are more restrictive or discriminatory as compared with the situation existing prior to the entry into force of this Agreement.

6. During the transitional period, Slovenia shall progressively adapt its legislation, including administrative, technical and other rules, to that of the Community existing at any time in the field of air and inland transport in so far as it serves liberalization purposes and mutual access to markets of the parties and facilitates the movement of passengers and of goods.

7. In step with the common progress in the achievement of the objectives of this Chapter, the Association Council shall examine ways of creating the conditions necessary for improving freedom to provide air and inland transport services.

CHAPTER IV GENERAL PROVISIONS

Article 56

1. The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.

2. They shall not apply to activities which in the territory of either party are connected, even occasionally, with the exercise of official authority.

Article 57

1. For the purpose of this Title, nothing in this Agreement shall prevent the parties from applying their laws and regulations regarding entry and stay, employment, working conditions, establishment of natural persons and supply of services, provided that, in so doing, they do not apply them in such a manner as to nullify or impair the benefits accruing to any party under the terms of a specific provision of this Agreement. This provision shall be without prejudice to the application of Article 56.

2. The exclusion of Community companies and nationals established in Slovenia in accordance with the provisions of Chapter II from public aid granted by Slovenia in the areas of public education services, health-related and social services and cultural services shall, for the duration of the transitional period referred to in Article 3, be deemed compatible with the provisions of this title and with the competition rules referred to in Title V.

Article 58

Companies which are controlled and exclusively owned jointly by Slovenian companies or nationals and Community companies or nationals shall also be covered by the provisions of this Title.

Article 59

1. The Most-Favoured-Nation treatment granted in accordance with the provisions of this Title shall not apply to the tax advantages which the parties are providing or will provide in the future on the basis of agreements designed to avoid double taxation or other tax arrangements.

2. None of the provisions of this Title shall be construed to prevent the adoption or enforcement by the parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation and other tax arrangements or domestic fiscal legislation.

3. None of the provisions of this Title shall be construed to prevent Member States or Slovenia in applying the relevant provisions of their fiscal legislation, from distinguishing between taxpayers who are not in identical situations, in particular as regards their place of residence.

Article 60

The provisions of this Title shall be progressively adjusted, notably in the light of requirements arising from Article V of the General Agreement on Trade in Services (GATS).

Article 61

The provisions of this Agreement shall not prejudice the application by each party of any measure necessary to prevent the circumvention of its measures concerning third-country access to its market through the provisions of this Agreement.

TITLE V PAYMENTS, CAPITAL, COMPETITION AND OTHER ECONOMIC PROVISIONS, APPROXIMATION OF LAWS

CHAPTER I CURRENT PAYMENTS AND MOVEMENT OF CAPITAL

Article 62

The parties undertake to authorise, 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, services or persons between the parties which have been liberalised pursuant to this Agreement.

Article 63

1. With regard to transactions on the capital account of balance of payments from the entry into force of this Agreement, the Member States and Slovenia respectively shall ensure the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the host country and investments made in accordance with the provisions of Chapter II of Title IV, and the liquidation or repatriation of the product of those investments and of any profit stemming therefrom.

Notwithstanding the above provision, such free movement, liquidation and repatriation shall be ensured by the end of the fourth year following the entry into force of this Agreement for all investments linked to establishment of Community nationals pursuing an activity in Slovenia as self-employed persons pursuant to Chapter II of Title IV.

With regard to acquisition of more than 25 % of shares providing voting rights issued under the Law on the Ownership Transformation of Enterprises in a company with a nominal share capital exceeding ECU 5 million, Slovenian government authorisation is required for a period of three years after the entry into force of this Agreement. Thereafter this restriction will be removed.

2. With regard to transactions on the capital account of balance of payments, from entry into force of this Agreement, the Member States and Slovenia respectively shall ensure free movement of capital relating to credits related to commercial transactions or to the provision of services in which a resident of one of the parties is participating, and to financial loans.

They shall also ensure from the fourth year after the entry into force of this Agreement free movement of capital relating to portfolio investment.

Without prejudice to Articles 62 and 63, where, in exceptional circumstances, movements of capital between the residents of the Community and Slovenia cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Slovenia, the Community and Slovenia, respectively, may take safeguard measures with regard to movements of capital between the Community and Slovenia for a period not exceeding six months if such measures are strictly necessary.

3. Without prejudice to paragraph 1, the Member States and Slovenia, as from the entry into force of this Agreement, shall not introduce any new foreign exchange restrictions on the movement of capital and current payments connected therewith between residents of the Community and Slovenia and shall not make the existing arrangements more restrictive.

4. The parties shall consult each other with a view to facilitating the movement of capital between the Community and Slovenia in order to promote the objectives of this Agreement.

Article 64

1. During the four years following the date of entry into force of this Agreement, the parties shall take measures permitting the creation of the necessary conditions for the further gradual application of Community rules on the free movement of capital.

2. By the end of the fourth year from the entry into force of this Agreement, the Association Council shall examine ways of enabling Community rules on the movement of capital to be applied in full.

CHAPTER II COMPETITION AND OTHER ECONOMIC PROVISIONS

Article 65

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

(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 Slovenia 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 certain products.

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 Community.

3. The Association Council shall, within three years of the entry into force of this Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2. Until the implementing rules are adopted, practices incompatible with paragraph 1 shall be dealt with by the parties on their respective territories according to their respective legislation. This shall be without prejudice to paragraph 6.

4. (a) For the purposes of applying the provisions of paragraph 1(iii), the parties recognise that during the first four years after the entry into force of this Agreement, any public aid granted by Slovenia shall be assessed taking into account the fact that Slovenia 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 Community. The Association Council shall, taking into account the economic situation of Slovenia, decide whether that period should be extended by further periods of four 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 III:

- paragraph 1(iii) shall not apply;

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

6. If the Community or Slovenia 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 injury to the interests of the other party or material injury to its domestic industry, including its services industry,

it may take appropriate measures after consultation within the Association Council or after thirty working days following referral for such consultation.

In the case of practices incompatible with paragraph 1(iii), such appropriate measures may, where the WTO Agreement applies thereto, only be adopted in accordance with the procedures and under the conditions laid down thereby and any other relevant instrument negotiated under its auspices which are applicable between the parties.

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

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 66

1. The parties shall endeavour wherever possible to avoid the imposition of restrictive measures, including measures relating to imports, for balance of payments purposes. A party adopting such measures shall present as soon as possible to the other party a timetable for their removal.

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

3. Any restrictive measures shall not apply to transfers related to investment and in particular to the repatriation of amounts invested or reinvested or any kind of revenues stemming therefrom.

Article 67

With regard to public undertakings, and undertakings to which special or exclusive rights have been granted, the Association Council shall ensure that as from the third year following the date of entry into force of this Agreement, the principles of the Treaty establishing the European Community, in particular Article 90 thereof, are upheld.

Article 68

1. Pursuant to the provisions of this Article and Annex X, the parties confirm the importance that they attach to ensure adequate and effective protection and enforcement of intellectual, industrial and commercial property rights.

2. From the entry into force of the Agreement, Slovenia shall protect intellectual, industrial and commercial property rights at a level of protection similar to that existing in the Community, including effective means of enforcing such rights.

3. Before the entry into force of the Agreement, Slovenia shall accede to the multilateral conventions on intellectual, industrial and commercial property rights referred to in paragraph 1 of Annex X.

4. If problems in the area of intellectual, industrial and commercial property affecting trading conditions were to occur, they shall be referred urgently to the Association Council, at the request of either party, with a view to reaching mutually satisfactory solutions.

Article 69

1. The parties consider the opening-up of the award of public contracts on the basis of non-discrimination and reciprocity, in particular in the WTO context, to be a desirable objective.

2. Slovenian companies, shall be granted access to contract award procedures in the Community pursuant to Community procurement rules under treatment no less favourable than that accorded to Community companies as from the entry into force of this Agreement, except for contracts covered by Directive 93/38/EEC.

The above provisions would also apply to contracts covered by Directive 93/38/EEC immediately the Slovenian government introduced the appropriate legislation. The Community shall examine periodically whether Slovenia has indeed introduced such legislation.

Community companies shall be granted access to contract award procedures in Slovenia under treatment no less favourable than that accorded to Slovenian companies at the latest by the end of the transitional period referred to in Article 3.

Community companies established in Slovenia under the provisions of Chapter II of Title IV shall have upon entry into force of this Agreement access to contract award procedures under treatment no less favourable than that accorded to Slovenian companies.

The Association Council shall periodically examine the possibility for Slovenia to introduce access to award procedures in Slovenia for all Community companies prior to the end of the transitional period.

3. As regards establishment, operations, supply of services between the Community and Slovenia, and also employment and movement of labour linked to the fulfilment of public contracts, the provisions of Articles 38 to 61 are applicable.

CHAPTER III APPROXIMATION OF LAWS

Article 70

The parties recognise that the major precondition for Slovenia's economic integration into the Community is the approximation of Slovenia's existing and future laws to that of the Community. Slovenia shall endeavour to ensure that its laws will be gradually made compatible with that of the Community.

Article 71

1. The approximation of laws shall extend to the following areas in particular: customs law, company law, banking law, insurance law, company accounts and taxation, financial services, rules on competition, rules on public contracts and public procurement, protection of health and life of humans, animals and plants, indirect taxation, technical rules and standards, nuclear law and regulation, transport and telecommunications.

2. The parties also consider it particularly important to make rapid progress in the approximation of laws in the field of the internal market, competition, protection of workers, consumers' rights and the environment.

Article 72

The Community shall provide Slovenia with technical assistance for the implementation of these measures, which may include inter alia:

- the exchange of experts;

- the provision of early information, especially on relevant legislation;

- organisation of seminars;

- training activities;

- aid for the translation of Community and Slovenian legislation in the relevant sectors.

TITLE VI ECONOMIC COOPERATION

Article 73

1. The Community and Slovenia shall establish economic cooperation aimed at contributing to Slovenia's development and growth potential. Such cooperation shall strengthen existing economic links on the widest possible foundation, to the benefit of both parties.

2. Policies and other measures will be designed to bring about the economic and social development of Slovenia and will be guided by the principle of sustainable development. These policies should ensure that environmental considerations are also fully incorporated from the outset and that they are linked to the requirements of harmonious social development.

3. To this end the cooperation should focus in particular on policies and measures related to industry including the mining sector, investment, agriculture, energy, transport, regional development and tourism.

4. Special attention must be devoted to measures capable of fostering cooperation between Slovenia and the countries of Central and Eastern Europe.

Article 74 Industrial cooperation

1. Cooperation shall be aimed at promoting the modernisation and restructuring of Slovenian industry in both public and private sectors as well as industrial cooperation between economic operators of both sides, with the particular objective of strengthening the private sector, while respecting the environment.

2. In particular cooperation shall promote:

- the restructuring of individual sectors; in this context, the Association Council will examine in particular the problems affecting the coal and steel sectors;

- the establishment of new undertakings in areas offering potential for growth.

3. Industrial cooperation initiatives shall take into account priorities determined by Slovenia. The initiatives should seek in particular to establish a suitable framework for undertakings, to improve management know-how, to promote markets, market transparency and the business environment, and will include technical assistance where appropriate.

Article 75 Investment promotion and protection

1. Cooperation between the parties shall be aimed at establishing a favourable climate for private investment, both domestic and foreign, which is essential to economic and industrial reconstruction in Slovenia.

2. The particular aims of cooperation shall be:

- for Slovenia to establish a legal framework which favours and protects investment;

- the conclusion, where appropriate, with Member States of bilateral agreements for the promotion and protection of investment;

- to conclude, where appropriate, agreements between Member States and Slovenia to avoid double taxation;

- to implement suitable arrangements for the transfer of capital;

- to proceed with deregulation;

- to improve economic infrastructure;

- to exchange information on investment opportunities through trade fairs, exhibitions, trade weeks and other events.

Article 76 Standards and conformity assessment

1. The parties shall cooperate with the aim of achieving Slovenia's full conformity with Community technical regulations and European standardisation and conformity assessment procedures.

2. To this end, the cooperation shall seek:

- to promote the use of Community technical regulations and European standards and conformity assessment procedures;

- where appropriate, to negotiate agreements on mutual recognition in these fields;

- to encourage participation by relevant Slovenian bodies in the work of specialised European organisations (CEN, CENELEC, ETSI, EOTC).

3. The Community will provide Slovenia with technical assistance where appropriate.

Article 77 Cooperation in science and technology

1. The parties shall promote cooperation in research and technological development. They shall devote special attention to the following:

- the exchange of information on each other's science and technology policies;

- the organisation of joint scientific meetings (seminars and workshops);

- joint R& D activities aimed at encouraging scientific progress and the transfer of technology and know-how;

- training activities and mobility programmes for researchers and specialists from both sides;

- the development of an environment conducive to research and the application of new technologies and adequate protection of intellectual property rights in respect of research findings;

- participation of Slovenia in the Community programmes in accordance with paragraph 3.

Technical assistance shall be provided where appropriate.

2. The Association Council shall determine the appropriate procedures for developing cooperation.

3. Cooperation under the Community's framework programme in the field of research and technological development shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the legal procedures of each party.

Article 78 Education and training

1. The parties shall cooperate with the aim of raising the level of general education and vocational qualifications in Slovenia, taking into consideration the priorities of Slovenia. Institutional frameworks and plans of cooperation will be established on the basis of the European Training Foundation and the TEMPUS programme. Participation of Slovenia in Community programmes in the field of education, training and youth shall be considered in the context of Article 106.

2. The cooperation shall focus in particular on the following areas and according to detailed arrangements to be determined jointly by the parties:

- the development of education and training system in Slovenia;

- initial training, in-service training and retraining, including the training of public and private sector business executives and senior civil servants, particularly in priority areas to be determined;

- cooperation between universities or other higher education institutions, cooperation between universities or other higher education institutions and firms, and mobility for teachers, young scientists, students and administrators (TEMPUS);

- promoting teaching in the field of European studies within the appropriate institutions;

- promotion of initiatives to foster mutual recognition of periods of study and diplomas;

- promotion of training of trainers.

3. In the field of translation, cooperation will focus on training of translators and interpreters and promotion of Community linguistic standards and terminology.

Article 79 Agriculture and the agro-industrial sector

1. Cooperation in this area shall have as its aim the modernisation of agriculture and the agro-industrial sector. It shall endeavour in particular to:

- develop and modernise processing businesses and their methods of storage, marketing, etc.;

- modernise the rural infrastructure (transport, water supply, telecommunications);

- improve land use planning, including construction and urban planning;

- improve productivity and quality through the use of appropriate methods and products; provide training and monitoring in the use of anti-pollution methods connected with inputs;

- promote complementarity in agriculture;

- promote technological cooperation in agriculture and the exchange of know-how, particularly between the private sectors in the Community and Slovenia;

- develop cooperation on animal health and plant health with the aim of bringing about gradual harmonisation with Community standards through assistance for training and the organisation of checks.

2. To these ends, technical assistance shall be provided by the Community as appropriate.

Article 80 Energy

1. In line with the principles of the market economy and of the Treaty on the European Energy Charter, the parties shall cooperate to develop the progressive integration of Europe's energy markets.

2. The cooperation shall include technical assistance where appropriate in the following areas:

- formulation and planning of energy policy both at national and regional level, including long-term aspects;

- opening up the energy market to a greater degree, including facilitating transit of gas and electricity;

- study of the modernisation of energy infrastructure;

- improvement of distribution as well as improvement and diversification of supply;

- management and training for the energy sector;

- the development of energy resources;

- the promotion of energy saving and energy efficiency;

- the environmental impact of energy production and consumption;

- the nuclear energy sector;

- the electricity and gas sectors, including consideration of the possibility of the interconnection of the supply networks;

- the formulation of framework conditions for cooperation between undertakings in this sector, which could include the encouragement of joint ventures;

- the transfer of technology and know-how, which may include if appropriate the promotion and commercialisation of efficient energy technologies;

- use and support for the new and renewable energy sources.

Article 81 Nuclear safety

1. The aim of cooperation on nuclear safety shall be to provide for a high level of nuclear safety.

2. Cooperation, as appropriate to the Slovenian specific situation, shall cover the following:

- nuclear safety including both regulatory and operational aspects and serious accident management;

- protection against radiation, including monitoring of radiation in the environment;

- fuel cycle problems and safeguarding of nuclear materials, including measures against nuclear smuggling;

- radioactive waste management;

- early exchange of information in case of radiological emergencies;

- decommissioning of nuclear facilities;

- nuclear third party liability.

3. Cooperation shall include the exchange of information and experience and R& D activities in accordance with Article 77.

Article 82 Environment and protection against natural disasters

1. The parties shall develop and strengthen their cooperation in the area of combating environmental degradation.

2. Cooperation shall concern the following priority areas:

- effective monitoring of pollution levels; systems of information on the state of the environment;

- combating local, regional and transboundary pollution (pollution of air and water, including drinking water);

- sustainable, efficient and environmentally effective production and use of energy; safety of industrial plants, including nuclear installations;

- classification and safe handling of chemicals;

- effective prevention and reduction of water pollution, especially of transboundary watercourses;

- reduction, recycling and safe disposal of waste (including radioactive waste) and implementation of the Basel Convention;

- the environmental impact of agriculture; soil erosion and pollution through the chemical products used in agriculture;

- protection of forests, flora and fauna and the conservation of biodiversity;

- restoring ecological stability in the countryside;

- land management, including construction and town planning;

- use of economic and fiscal instruments;

- global climate change and its prevention;

- management of coastal areas and the prevention of marine pollution;

- international conventions in the area of environment;

- improvement of environmental standards of cars;

- environmental impact assessment of concepts and infrastructural projects concerning traffic/transport;

- correct assessment of costs and internalisation of external costs.

3. Cooperation shall comprise:

- exchange of information and experts, including information and experts concerned with the transfer of clean technologies and the safe use of environmentally sound biotechnologies;

- training programmes and courses;

- joint research activities;

- approximation of laws (Community standards);

- cooperation at regional level (including cooperation within the framework of the European Environment Agency) and at international level;

- development of strategies, particularly with regard to global and climatic issues;

- environmental education and awareness of environmental issues;

- environmental impact assessments.

4. In the field of protection against natural disasters, the aim of cooperation is to assure protection of people, animals, property and environment against natural and man-made disasters.

To this end, the cooperation shall include the following areas:

- exchange of the outcome of the scientific and research development projects;

- mutual and early notification on hazards disasters and their consequences;

- rescue and relief assistance systems in cases of disasters;

- exchange of experience in rehabilitation and reconstruction after a disaster;

- education and training for protection against natural and man-made disasters;

- rescue and relief exercise.

Article 83 Transport

1. The parties shall develop and step up cooperation in order to enable Slovenia to:

- restructure and modernise transport;

- improve movement of passengers and goods and access to the transport market by removing administrative, technical and other barriers;

- achieve operating standards comparable to those in the Community;

- develop a transport system that is compatible and aligned with the Community system.

2. The cooperation shall include the following in particular:

- economic, legal and technical training programmes;

- technical assistance, advice, and exchanges of information.

3. The cooperation shall include the following priority areas:

- road transport, including taxation and social and environmental aspects;

- combined rail and road transport;

- the management of railways and airports, including cooperation between the relevant national authorities;

- the development of road, rail, port and airport infrastructure on major routes of common interest and trans-European links;

- the harmonisation of international transport statistics;

- the renovation of technical transport equipment in line with Community standards, particularly as regards road-rail transport, multimodal transport and trans-shipment;

- the promotion of joint technological and research programmes in accordance with established procedures;

- the adoption of coordinated transport policies that are compatible with those applied in the Community.

Article 84 Post and telecommunications

1. The parties shall expand and strengthen cooperation in the area of post and telecommunications and shall to this end in particular:

- exchange information on telecommunications and postal services policies;

- exchange technical and other information and organise seminars, workshops and conferences for experts of both sides;

- conduct training and advisory operations;

- carry out transfers of technology;

- have the appropriate bodies from both sides carry out joint projects;

- promote European standards, systems of certification and regulatory approaches;

- promote new communications facilities, particularly those with commercial applications.

2. These activities shall focus on the following priority areas:

- the modernisation of Slovenia's telecommunications network and postal services and their integration into European and world networks;

- cooperation within the structures of European standardisation;

- the integration of trans-European systems; the legal and regulatory aspects of telecommunications;

- the management of telecommunications in the new economic environment: organisational structures, strategy and planning, purchasing principles;

- land use planning, including construction and urban planning.

Article 85 Banking, insurance and other financial services

1. The parties shall cooperate with the aim of establishing and developing a suitable framework for the encouragement of banking, insurance and financial services sector in Slovenia.

(a) The cooperation shall focus on:

- the adoption of a common accounting system compatible with European standards;

- the strengthening and restructuring of the banking, insurance and other financial sectors;

- the improvement of supervision and regulation of banking and other financial services, and technical assistance to the establishment and the operations of an insurance supervision body in Slovenia;

- the preparation of translations of Community and Slovenian legislation;

- the preparation of terminology glossaries;

- the exchange of information in particular in respect of proposed legislation.

(b) To this end, the cooperation shall include the provision of technical assistance and training.

2. The parties shall cooperate with the aim of developing efficient audit systems in Slovenia following the harmonised Community methods and procedures.

(a) Cooperation shall focus on:

- technical assistance to the court of auditors in Slovenia;

- the establishment of internal audit units in official agencies;

- the exchange of information with regard to auditing systems;

- the standardisation of audit documentation;

- training and advisory operations.

(b) To this end, technical assistance shall be provided by the Community as appropriate.

Article 86 Monetary policy

At the request of Slovenian authorities, the Community shall provide assistance designed to support the efforts of Slovenia towards the introduction of full convertibility of the tolar and the gradual approximation of its policies to those of the European Monetary System. Cooperation in this area will include informal exchange of information concerning the principles and the functioning of the European Monetary System, the European Monetary Institute and the European system of Central Banks.

Article 87 Prevention of money laundering

1. The parties agree on the necessity of making every effort and cooperating in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular.

2. Cooperation in this area shall include administrative and technical assistance with the purpose to develop the implementation of regulations and efficient functioning of the suitable standards and mechanisms to combat money laundering equivalent to those adopted by the Community and international fora in this field, in particular the Financial Action Task Force (FATF).

Article 88 Regional development

1. The parties shall strengthen cooperation between them on regional development and land use.

2. To this end, any of the following measures may be undertaken:

- the exchange of information by national, regional or local authorities on regional and land use planning policy;

- the provision of assistance to Slovenia for the formulation of such policy;

- joint action by regional and local authorities in the area of economic development;

- the study of coordinated approaches for the development of border areas between the Community and Slovenia and other areas of Slovenia with severe regional disparities;

- exchange visits to explore the opportunities for cooperation and assistance;

- the exchange of civil servants or experts;

- the provision of technical assistance;

- the establishment of programmes for the exchange of information and experience, by methods including seminars.

Article 89 Social cooperation

1. With regard to health and safety at work, the parties shall develop cooperation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community. Cooperation shall comprise the following in particular:

- the provision of technical assistance;

- the exchange of experts;

- cooperation between firms;

- the exchange of information and administrative and other relevant assistance to firms; training operations.

2. With regard to employment, cooperation between the parties shall focus notably on upgrading job-finding and careers advice services, providing back-up measures and promoting local development to assist industrial restructuring.

It shall also include measures such as studies, the secondment of experts and information and training operations.

3. With regard to social security, cooperation between the parties shall seek to adapt the Slovenian social security system to the new economic and social requirements, notably by providing the services of experts and organising information and training activities.

Article 90 Tourism

The parties shall increase and develop cooperation between them with a view to:

- encouraging tourism;

- increasing the flow of information through international networks, data banks, etc.;

- transferring know-how by organising training, exchanges and seminars;

- executing regional tourist projects such as cross-frontier projects, town-twinning, etc.;

- exchanging views and providing for appropriate exchanges of information on major issues of mutual interest affecting the tourism sector;

- encouraging the development of infrastructure conductive to investment in the tourism sector;

- introducing a computerised reservation and information system in Slovenia, together with rules for the protection of tourists as consumers.

Article 91 Small and medium-sized enterprises

1. The parties shall aim to develop and strengthen private sector small and medium-sized enterprises (SMEs) and cooperation between SMEs in the Community and Slovenia.

2. They shall encourage the exchange of information and know-how in the following areas:

- bringing about the legal, administrative, technical, tax and financial conditions necessary to the establishment and expansion of SMEs and for cross-border cooperation;

- the provision of the specialised services required by SMEs (management training, accounting, marketing, quality control, etc.) and the strengthening of agencies providing such services;

- the establishment of appropriate links with Community operators with the aim of improving the flow of information to SMEs and promoting cross-border cooperation, (for example, through the Business Cooperation Network (BC-NET), Euro-Info Centres, conferences, etc.).

3. The cooperation will include:

- the provision of technical assistance, in particular for the establishment of appropriate institutional support for SMEs, at national and regional level, in respect of financial, technological and commercial services;

- training and advisory services.

Article 92 Information communication

1. The Community and Slovenia shall take appropriate steps to stimulate effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and Slovenia, and at supplying Slovenian business circles with more specialised information, including, where possible, access to Community databases.

2. The parties shall coordinate and, where appropriate, harmonise their policies regarding the regulation of cross-border broadcasts, technical standards and the promotion of European audiovisual technology.

3. Cooperation may include providing for exchange programmes, scholarships, training facilities for journalists and experts in the sectors of the media as appropriate.

Article 93 Consumer protection

1. The parties shall cooperate with the aim of achieving compatibility between the consumer protection systems of Slovenia and the Community. Effective consumer protection should be sought as a prerequisite for an efficient market economy.

2. To this end, in view of their shared interests, the parties shall promote and provide:

- active consumer protection policies, in line with Community legislation and, where appropriate, United Nations guidelines;

- harmonisation of legislation and alignment of Slovenian consumer protection laws with those applied in the Community;

- effective legal protection of consumers in order to improve quality and guarantee adequate safety standards for consumer goods.

3. Cooperation in this field may include:

- exchanges of information on dangerous products;

- training of government and NGO experts in the field of consumer protection;

- assistance with the development of independent organisations whose goal is to improve information to consumers, particularly through awareness campaigns;

- the establishment of information and advice centres to settle disputes and provide legal and other advice to consumers; cooperation between Slovenia and Community centres;

- access to Community databases;

- development of exchanges between representatives of consumers' interests.

Article 94 Customs

1. The aim of cooperation shall be to guarantee compliance with all the provisions scheduled for adoption in connection in the area of trade and to achieve the approximation of Slovenia's customs system to that of the Community, thus helping to pave the way for liberalization measures planned under this Agreement.

2. Cooperation shall include the following in particular:

- the exchange of information including on the methods of investigation;

- the development of cross-frontier infrastructure between the parties;

- the interconnection between the transit systems of the Community and Slovenia;

- the simplification of inspections and formalities in respect of the carriage of goods;

- the organisation of seminars and placements.

Technical assistance shall be provided where appropriate.

3. Without prejudice to further cooperation provided for in this Agreement, and in particular Article 97, the mutual assistance between administrative authorities in customs matters of the parties shall take place in accordance with the provisions of Protocol 5.

Article 95 Statistical cooperation

1. Cooperation in the area of statistics shall have as its aim the development of an efficient statistical system to provide, in a rapid and timely fashion, the reliable statistics needed to plan and monitor the process of reform and to contribute to the development of private enterprise in Slovenia.

2. To this end the parties shall cooperate in particular:

- to promote the development of an efficient statistical service in Slovenia with the requisite institutional framework;

- to bring about harmonisation with international (and particularly Community) methods, standards and classifications;

- to provide the data needed to maintain and monitor economic reform;

- to provide private sector economic operators with the appropriate macroeconomic and microeconomic data;

- to guarantee the confidentiality of individual data;

- to enable Slovenia to adopt the principles and standards of the Community statistical system.

3. Cooperation in this field shall include:

- providing information on methods;

- organising a programme of technical assistance comprising:

- seminars, placements and technical consultations;

- training activities;

- pilot surveys;

- participation in selected Eurostat working groups;

- exchange of statistical data.

Article 96 Economic policy

1. The Community and Slovenia shall facilitate the process of economic reform and integration by cooperating to improve understanding of the fundamentals of their respective economies and of implementing economic policy in market economies.

2. To these ends the Community and Slovenia shall cooperate to:

- exchange information on macroeconomic performance and prospects and on strategies for development;

- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it;

- through the programme of Action for Cooperation in Economics in particular, encourage extensive cooperation among economists and managers in the Community and Slovenia, in order to speed the transfer of know-how for the drafting of economic policies, and provide for wide dissemination of the results of policy-relevant research.

Article 97 Combating drug abuse

1. Within the scope of their respective powers and competences, the parties shall cooperate in increasing the efficiency of policies and measures to counter the illicit supply and traffic of narcotics and psychotropic substances and reducing abuse of these products.

2. The parties shall agree on the necessary methods of cooperation to attain these objectives, including the detailed arrangements for the implementation of common actions. Their actions will be based on consultation on and close coordination of the objectives and the policy measures in the fields targeted in paragraph 1.

3. The cooperation between the parties shall comprise technical and administrative assistance which could deal in particular with the following areas: the drafting and implementation of national legislation; the establishment of institutions and information centres and of social and health centres; the training of personnel and research; the prevention of diversion of precursors used for the purpose of illicit manufacture of narcotic drugs of psychotropic substances. The parties may agree to include other areas.

TITLE VII PREVENTION OF ILLEGAL ACTIVITIES

Article 98

1. The parties shall, within the scope of their respective powers and competences, establish a framework for cooperation designed to prevent illegal activities such as:

- clandestine immigration and the illegal presence of either party's nationals on the other's territory, with due allowance for the principles and practices of readmission;

- illegal economic activities, notably corruption;

- illegal transactions involving merchandise such as industrial waste and counterfeit goods;

- illegal trafficking in drugs and psychotropic substances;

- illegal transfer of motor vehicles;

- organised crime;

- theft or an illegal trade in radioactive and nuclear material.

2. Cooperation in the areas referred to in paragraph 1 shall be the subject of mutual consultations and close coordination. This cooperation should include technical and administrative assistance in:

- the drafting of national legislation for the prevention of illegal activities;

- the establishment of information centres;

- improving the efficiency of institutions responsible for preventing illegal activities;

- staff training and development of investigative facilities;

- drawing up mutually acceptable measures for the prevention of illegal activities.

TITLE VIII CULTURAL COOPERATION

Article 99

1. The parties undertake to promote cultural cooperation. Where appropriate, the Community's cultural cooperation programmes, or those of one or more Member States, may be extended to Slovenia and further activities of interest to both sides developed.

This cooperation may cover in particular:

- literary translation;

- non-commercial exchanges of works of art and artists;

- conservation and restoration of monuments and sites (architectural and cultural heritage);

- training for those dealing with cultural affairs;

- the organisation of cultural events with a European emphasis;

- dissemination of information on major cultural works.

2. The parties may cooperate in the promotion of the audiovisual industry in Europe. In particular, the Slovenian audiovisual sector could apply to take part in activities set up by the Community in the framework of the MEDIA programme, in accordance with the procedures laid down by the bodies responsible for the various activities and the provisions of Council Decision 90/685/EEC which established the programme.

The parties shall coordinate and, where appropriate, harmonise their policies governing cross-border broadcasts, paying particular attention to the acquisition of intellectual property rights for satellite and cable broadcasts, audiovisual technical standards and the promotion of European audiovisual technology.

Cooperation in this area might also include exchanges of programmes, scholarships and equipment with a view to the training of journalists and other media professionals.

TITLE IX FINANCIAL COOPERATION

Article 100

In order to achieve the objectives of this Agreement and in accordance with Articles 101, 102 and 104, without prejudice to Article 103, Slovenia shall receive temporary financial assistance from the Community in the form of grants and loans, including loans from the European Investment Bank according to the provisions of Article 18 of the Statute of the Bank.

Article 101

This financial assistance shall be covered by:

- the Operation PHARE measures provided for in Council Regulation (EEC) No 3906/89, as amended, on a multiannual basis, or within a new multiannual financial framework established by the Community following consultations with Slovenia and taking into account the considerations set out in Articles 104 and 105 of this Agreement;

- loans provided by the European Investment Bank until the expiry date of the availability thereof. Following consultations with Slovenia the Community shall fix the maximum amount and period of availability of loans from the European Investment Bank for Slovenia for subsequent years.

Article 102

The objectives and the areas of the Community's financial assistance shall be laid down in an indicative programme to be agreed between the two parties. The parties shall inform the Association Council.

Article 103

1. The Community shall, in case of special need, taking into account the availability of all financial resources, at the request of Slovenia and in coordination with international financial institutions, in the context of the G-24, examine the possibility of granting temporary financial assistance:

- to support, as appropriate, measures with the aim of ensuring the viability of Slovenia's external accounts and maintaining the convertibility of its currency;

- to support medium-term structural adjustment efforts in the Slovenian economy, including balance of payments assistance.

2. This financial assistance shall be subject to the presentation by Slovenia of stabilisation programmes for its economy, approved by the IMF, to the Community's acceptance thereof, to Slovenia's continued adherence to these programmes and, as an ultimate objective, to rapid transition to reliance on finance from private sources.

3. The Association Council will be informed of the conditions under which this assistance will be provided and regarding compliance with the obligations undertaken by Slovenia concerning such assistance.

Article 104

The Community financial assistance shall be evaluated in the light of the needs which arise and of Slovenia's development level, and taking into account established priorities and the absorption capacity of Slovenia's economy, the ability to repay loans and introduction of a market economy system and restructuring in Slovenia.

Article 105

In order to permit optimum use of the resources available, the parties shall ensure that Community contributions are made in close coordination with those from other sources such as the Member States, other countries, including the G-24, and international financial institutions, such as the International Monetary Fund, the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development.

Article 106

Slovenia shall participate in framework programmes, specific programmes, projects or other actions of the Community in the fields laid down in Annex XI. Without prejudice to the existing participation of Slovenia in the activities referred to in Annex XI, the Association Council shall decide the terms and conditions for the participation of Slovenia in these activities. The financial contribution of Slovenia to the activities referred to in Annex XI shall be based on the principle that Slovenia shall meet the costs resulting from its participation. If necessary the Community may decide, on a case-by-case basis, and pursuant to the rules applicable to the general budget of the European Communities, to pay a supplement to Slovenia's contribution.

TITLE X PROVISIONS RELATING TO THE OSIMO AGREEMENTS AND CONCERNING ECONOMIC COOPERATION BETWEEN SLOVENIA AND ITALY

Article 107

In order to promote regional cooperation, the Community and Slovenia shall give particular attention, as part of the implementation of their cooperation, to activities which come within the scope of the Agreements signed at Osimo on 10 November 1975 by the Italian Republic and the Socialist Federal Republic of Yugoslavia and to the transfrontier cooperation initiatives which form part of the general framework of economic cooperation between Italy and Slovenia.

In particular, the parties shall take account of their mutual interest in attaining the objectives referred to in the first subparagraph in the selection of projects that are to receive financial assistance in the context of cooperation.

Article 108

Without prejudice to Article 31, the Community, within the framework of Community provisions governing free zones, and Slovenia shall grant free access to their markets to products that have obtained originating status, within the meaning of the Protocol on originating products, in the free frontier zones which could be created by agreement between the Italian Republic and Republic of Slovenia within the meaning of the Agreement on the promotion of economic cooperation, signed in Osimo in 1975.

Article 109

For the purposes of the implementation of Articles 107 and 108, the Community and Slovenia shall cooperate in accordance with the cooperation objectives referred to in Article 107.

TITLE XI INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 110

An Association Council is hereby established which shall supervise the implementation of this Agreement. It shall meet at Ministerial level once a year and when circumstances require. It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.

Article 111

1. The Association Council shall consist of the members of the Council of the European Union and members of the Commission of the European Communities, on the one hand, and of members of the Government of Slovenia, on the other.

2. Members of the Association Council may arrange to be represented, in accordance with the conditions to be laid down in its rules of procedure.

3. The Association Council shall establish its rules of procedure.

4. The Association Council shall be chaired in turn by a member of the Council of the European Union and a member of the Government of Slovenia, in accordance with the provisions to be laid down in its rules of procedure.

5. In matters which concern it, the European Investment Bank shall take part, as an observer, in the work of the Association Council.

Article 112

The Association Council shall, for the purpose of attaining the objectives of this 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 Association Council may also make appropriate recommendations.

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

Article 113

1. Each of the two parties may refer to the Association Council any dispute relating to the application or interpretation of this Agreement.

2. The Association Council 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. For the application of this procedure, the Community and the Member States shall be deemed to be one party to the dispute.

The Association Council shall appoint a third arbitrator.

The arbitrators' decision shall be taken by majority vote.

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

Article 114

1. The Association Council shall be assisted in the performance of its duties by an Association Committee composed of representatives of the members of the Council of the European Union and of members of the Commission of the European Communities, on the one hand, and of representatives of the Government of Slovenia, on the other, normally at senior civil servant level.

In its rules of procedure the Association Council shall determine the duties of the Association Committee, which shall include the preparation of meetings of the Association Council, and shall determine how the Committee shall function.

2. The Association Council may delegate to the Association Committee any of its powers. In this event the Association Committee shall take its decisions in accordance with the conditions laid down in Article 112.

Article 115

The Association Council may decide to set up any other special committee or body that can assist it in carrying out its duties.

In its rules of procedure, the Association Council shall determine the composition and duties of such committees or bodies and how they shall function.

Article 116

An Association Parliamentary Committee is hereby established. It shall be a forum for Members of the Slovenian Parliament and the European Parliament to meet and exchange views. It shall meet at intervals which it shall itself determine.

Article 117

1. The Association Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of Members of the Slovenian Parliament, on the other.

2. The Association Parliamentary Committee shall establish its rules of procedure.

3. The Association Parliamentary Committee shall be chaired in turn by the European Parliament and the Slovenian Parliament, in accordance with the provisions to be laid down in its rules of procedure.

Article 118

The Association Parliamentary Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall supply the Committee with the requested information.

The Association Parliamentary Committee shall be informed of the decisions of the Association Council.

The Association Parliamentary Committee may make recommendations to the Association Council.

Article 119

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 120

Nothing in this Agreement shall prevent a 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, munitions 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 121

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

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

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

2. The provisions of paragraph 1 shall be without prejudice to the right of the parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence.

Article 122

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

The treatment granted to Slovenia under Title IV and Chapter I of Title V shall not be more favourable than that accorded by Member States among themselves.

Article 123

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

2. If either party considers that the other party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Association Council 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 this Agreement. These measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other party so requests.

Article 124

This Agreement shall not, until equivalent rights for individuals and economic operators have been achieved under this Agreement, affect rights ensured to them through existing agreements binding one or more Member States, on the one hand, and Slovenia, on the other.

Article 125

For the purposes of this Agreement, the term 'parties` shall mean the Community, or its Member States, or the Community and its Member States, in accordance with their respective powers, of the one part, and Slovenia, of the other part.

Article 126

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

Article 127

This Agreement is concluded for an unlimited period.

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 128

The Secretary General of the Council of the European Union shall be the depository of the Agreement.

Article 129

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

Article 130

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

Article 131

This Agreement shall be approved by the parties in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the parties notify each other that the procedures referred to in the first paragraph have been completed.

Upon its entry into force, this Agreement shall replace the Cooperation Agreement between the European Economic Community and the Republic of Slovenia signed in Luxembourg on 5 April 1993, and the Agreement between the Member States of the European Coal and Steel Community and the European Coal and Steel Community, of the one part, and the Republic of Slovenia, of the other part, signed in Luxembourg on 5 April 1993.

Article 132

In the event that, pending the completion of the procedures necessary for the entry into force of this Agreement, the provisions of certain parts of this Agreement, in particular those relating to goods, are put into effect in 1996 by means of an Interim Agreement between the Community and Slovenia, the parties agree that, in such circumstances for the purposes of Title III, Articles 65, 67 and 68 of this Agreement and Protocols 1 to 6 hereto, the terms 'date of entry into force of this Agreement` shall mean:

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

- 1 January 1996 in relation to obligations taking effect after the date of entry into force by reference to the date of entry into force.

Hecho en Luxemburgo, el diez de junio de mil novecientos noventa y seis.

Udfærdiget i Luxembourg den tiende juni nitten hundrede og seksoghalvfems.

Geschehen zu Luxemburg am zehnten Juni neunzehnhundertsechsundneunzig.

¸ãéíå óôï Ëïõîåìâïýñãï, óôéò äÝêá Éïõíßïõ ÷ßëéá åííéáêüóéá åíåíÞíôá Ýîé.

Done at Luxembourg on the tenth day of June in the year one thousand nine hundred and ninety-six.

Fait à Luxembourg, le dix juin mil neuf cent quatre-vingt-seize.

Fatto a Lussemburgo, addì dieci giugno millenovecentonovantasei.

Gedaan te Luxemburg, de tiende juni negentienhonderd zesennegentig.

Feito no Luxemburgo, em dez de Junho de mil novecentos e noventa e seis.

Tehty Luxemburgissa kymmenentenä päivänä kesäkuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkuusi.

Som skedde i Luxemburg den tionde juni nittonhundranittiosex.

V Luksemburgu, desetega junija tiso Ocdevetsto Osestindevetdeset.

Pour le Royaume de Belgique

Voor het Koninkrijk België

Für das Königreich Belgien

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Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

For Kongeriget Danmark

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Für die Bundesrepublik Deutschland

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Ãéá ôçí ÅëëçíéêÞ ÄçìïêñáôéÜ

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Por el Reino de España

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Pour la République française

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Thar ceann na hÉireann

For Ireland

>REFERENCE TO A GRAPHIC>

Per la Repubblica italiana

>REFERENCE TO A GRAPHIC>

Pour le Grand-Duché de Luxembourg

>REFERENCE TO A GRAPHIC>

Voor het Koninkrijk der Nederlanden

>REFERENCE TO A GRAPHIC>

Für die Republik Österreich

>REFERENCE TO A GRAPHIC>

Pela República Portuguesa

>REFERENCE TO A GRAPHIC>

Suomen tasavallan puolesta

För Republiken Finland

>REFERENCE TO A GRAPHIC>

För Konungariket Sverige

>REFERENCE TO A GRAPHIC>

For the United Kingdom of Great Britain and Northern Ireland

>REFERENCE TO A GRAPHIC>

Por las Comunidades Europeas

For De Europæiske Fællesskaber

Für die Europäischen Gemeinschaften

Ãéá ôéò ÅõñùðáúêÝò Êïéíüôçôåò

For the European Communities

Pour les Communautés européennes

Per le Comunità europee

Voor de Europese Gemeenschappen

Pelas Comunidades Europeias

Euroopan yhteisöjen puolesta

För Europeiska gemenskaperna

>REFERENCE TO A GRAPHIC>

Za Republiko Slovenijo

>REFERENCE TO A GRAPHIC>

ANNEX I

>TABLE>

ANNEX II

>TABLE>

>TABLE>

ANNEX III

LIST OF PRODUCTS REFERRED TO IN ARTICLE 11(2)

2501 00

2505 10

2505 90

2506 21

2506 29

2508 10

2508 30

2508 40

2508 60

2509 00

2517 10

2517 49

2518 10

2518 20

2518 30

2521 00

2522 10

2522 20

2522 30

2528 90

2530 90

2710 00 27

2710 00 29

2710 00 32

2710 00 34

2710 00 36

2710 00 69

2710 00 74

2710 00 76

2710 00 77

2710 00 78

2715 00

2804 10

2804 21

2805 40

2810 00

2811 19

2811 22

2811 23

2811 29

2815 30

2818 10

2818 20

2821 20

2824 10

2824 20

2824 90

2826 19

2826 20

2826 90

2827 20

2827 36

2827 39

2828 10

2829 90

2830 30

2830 90

2831 90

2832 10

2832 20

2833 19

2833 21

2833 26

2833 29

2833 40

2834 22

2834 29

2835 10

2835 21

2835 22

2835 23

2835 24

2835 25

2835 26

2835 29

2835 39

2836 10

2836 91

2836 92

2836 93

2836 99

2837 19

2837 20

2838 00

2839 11

2839 19

2839 20

2839 90

2840 11

2840 19

2840 20

2841 10

2841 50

2841 70

2841 80

2841 90

2842 10

2842 90

2843 29

2846 10

2846 90

2848 10

2848 90

2849 20

2849 90

2850 00

2851 00

2901 10

2901 21

2901 22

2901 23

2901 24

2901 29

2902 11

2902 19

2902 42

2902 43

2902 60

2902 70

2902 90

2903 12

2903 13

2903 14

2903 15

2903 16

2903 19

2903 29

2903 30

2903 40

2903 51

2903 59

2903 61

2903 62

2903 69

2904 10

2904 90

2905 11

2905 14

2905 15

2905 17

2905 19

2905 21

2905 22

2905 29

2905 39

2905 41

2905 43

2905 49

2905 50

2906 12

2906 13

2906 14

2906 19

2906 21

2906 29

2907 14

2907 15

2907 19

2907 22

2907 23

2907 29

2907 30

2908 10

2908 20

2908 90

2909 20

2909 30

2909 50

2909 60

2910 20

2910 90

2912 12

2912 13

2912 19

2912 21

2912 30

2912 42

2912 49

2912 50

2912 60

2913 00

2914 19

2914 21

2914 23

2914 29

2914 30

2914 41

2914 50

2914 70

2915 23

2915 40

2915 50

2915 60

2916 19

2916 20

2916 32

2916 33

2916 39

2917 13

2917 14

2917 20

2917 34

2917 36

2918 17

2918 19

2918 23

2918 29

2918 30

2918 90

2919 00

2921 12

2921 22

2921 30

2921 41

2921 42

2921 43

2921 44

2921 45

2921 49

2922 21

2922 22

2922 29

2922 30

2923 90

2924 21

2925 19

2925 20

2926 20

2926 90

2928 00

2929 90

2930 10

2932 12

2933 21

2933 79

2942 00

3004 10

3004 20 90

3004 31 90

3004 32

3004 39

3004 40

3004 50

3004 90

3005 10

3005 90

3006 20

3006 30

3006 40

3006 50

3006 60

3101 00

3105 10

3201 30

3201 90

3207 10

3207 20

3207 30

3207 40

3209 90

3210 00

3212 10

3212 90

3213 10

3213 90

3214 90

3215 11

3215 19

3302 10

3302 90

3303 00 90

3304 10

3304 20

3304 30

3304 91

3304 99

3305 10

3305 20

3305 30

3305 90

3306 10

3306 90

3307 10

3307 20

3307 30

3307 41

3307 49

3307 90

3401 11

3401 19

3401 20

3402 11

3402 12

3402 13

3402 19

3402 90

3403 11

3403 19

3403 91

3403 99

3404 10

3404 20

3404 90

3405 10

3405 20

3405 30

3405 40

3405 90

3407 00

3501 90

3505 10

3505 20

3506 10

3506 91

3506 99

3507 10

3601 00

3604 10

3604 90

3606 10

3606 90

3701 99

3801 90

3804 00

3805 10

3805 20

3805 90

3808 10

3808 20

3808 30

3808 40

3808 90

3809 10

3809 91

3809 92

3809 99

3810 10

3810 90

3814 00

3816 00

3817 20

3819 00

3820 00

3822 00

3823 10

3823 20

3823 30

3823 40

3823 50

3905 11

3905 19

3905 90

3906 10

3907 50

3907 91

3907 99

3909 10

3909 30

3909 40

3909 50

3915 10

3915 20

3915 30

3915 90

3916 10

3916 20

3916 90

3917 21

3917 22

3917 23

3917 29

3917 31

3917 32

3917 33

3917 39

3917 40

3918 90

3919 10

3919 90

3920 10

3920 20

3920 30

3920 41

3920 42

3920 51

3920 59

3920 61

3920 62

3920 63

3920 69

3920 72

3920 73

3920 79

3920 92

3920 93

3920 94

3920 99

3921 11

3921 12

3921 13

3921 14

3921 19

3921 90

3922 20

3922 90

3923 10

3923 29

3923 30

3923 40

3923 50

3923 90

3924 10

3924 90

3925 10

3925 20

3925 30

3925 90

3926 10

3926 20

3926 30

3926 90

4003 00

4004 00

4005 10

4005 91

4005 99

4006 10

4006 90

4008 11

4008 19

4008 21

4008 29

4009 10

4009 20

4009 30

4009 40

4009 50

4010 10

4010 91

4010 99

4011 10

4011 20

4011 50

4011 91

4012 10

4012 20

4012 90

4013 10

4013 20

4013 90

4015 19

4015 90

4016 10

4016 91

4016 93

4016 94

4016 95

4016 99

4104 10 95

4104 10 99

4104 29

4105 11 91

4105 11 99

4105 12 90

4105 19 90

4105 20

4106 11 90

4106 12

4106 19

4106 20

4107 10 90

4107 21

4107 29

4107 90

4108 00

4109 00

4110 00

4111 00

4302 11

4302 12

4302 13

4302 19

4302 20

4304 00 10

4701 00

4702 00

4704 11

4704 19

4704 29

4707 10

4707 20

4707 30

4707 90

4802 10

4802 40

4802 51

4802 53

4809 10

4809 20

4809 90

4810 21

4810 29

4811 29

4811 31

4811 39

4814 10

4814 90

4815 00

4816 30

4816 90

4817 10

4817 20

4817 30

4820 10

4820 20

4820 30

4820 40

4820 50

4820 90

4821 10

4821 90

4823 11

4823 19

4823 30

4823 51

4823 60

4823 90

4901 99

4907 00

4908 10

4909 00

4910 00

4911 10

4911 91

4911 99

6403 51 19

6403 51 91

6403 51 95

6403 51 99

6403 59

6403 91

6403 99

6406 91

6601 10

6601 91

6601 99

6603 10

6603 20

6603 90

6801 00

6802 10

6802 21

6802 22

6802 23

6802 29

6802 91

6802 92

6802 93

6802 99

6803 00

6804 21

6804 22

6804 23

6804 30

6805 10

6805 20

6805 30

6806 10

6806 90

6809 11

6809 19

6809 90

6812 70

6815 91

6901 00

6903 10

6903 20

6903 90

6906 00

6907 90

6908 90

6909 11

6912 00

6914 10

6914 90

7007 19

7007 29

7008 00

7010 90

7013 21

7013 29

7013 31

7013 39 91

7013 39 99

7013 91

7017 90

7019 20

7019 39

7019 90

7020 00

7307 19

7307 21

7308 10

7308 20

7308 40

7308 90

7311 00

7313 00

7314 20

7314 30

7314 41

7314 42

7314 49

7314 50

7315 11

7315 12

7315 19

7315 20

7315 81

7315 82

7315 89

7315 90

7320 10

7320 20

7320 90

7321 81

7321 82

7321 83

7321 90

7322 11

7322 19

7322 90

7324 29

7610 90

7612 10

8201 10

8201 20

8201 30

8201 40

8201 50

8201 60

8201 90

8202 10

8202 20

8202 31

8202 32

8202 40

8202 91

8202 99

8207 30

8208 10

8208 20

8208 30

8208 40

8213 00

8303 00

8304 00

8307 10

8307 90

8308 20

8309 10

8310 00

8403 90

8404 10

8404 20

8404 90

8408 10

8408 20 31

8408 20 35

8408 20 37

8408 20 51

8408 20 55

8408 20 57

8408 20 99

8408 90

8412 21

8412 31

8414 20

8414 30

8414 40

8414 80

8416 10

8416 20

8416 30

8416 90

8419 11

8419 19

8419 31

8419 32

8419 50

8419 60

8421 11

8421 12

8421 19

8421 21

8421 22

8421 23

8421 29

8421 31

8421 39 30

8421 39 51

8421 39 55

8421 39 71

8421 39 75

8421 91

8422 30

8422 40

8424 20

8424 89

8424 90

8426 11

8426 12

8426 19

8426 20

8426 30

8426 41

8426 49

8426 91

8426 99

8430 20

8431 10

8431 20

8431 31

8431 39

8431 41

8431 42

8431 43

8431 49

8432 10

8432 21

8432 29

8432 30

8432 80

8432 90

8433 11

8433 40

8433 52

8433 53

8433 60

8433 90

8434 10

8434 20

8434 90

8435 10

8435 90

8436 80

8441 80

8450 20

8450 90

8451 10

8451 29

8451 30

8451 40

8451 50

8451 80

8451 90

8453 10

8453 20

8453 80

8453 90

8454 10

8454 20

8456 10

8456 20

8456 30

8456 90

8457 10

8457 20

8457 30

8458 11

8458 19

8458 91

8458 99

8459 10

8459 21

8459 29

8459 31

8459 39

8459 40

8459 51

8459 59

8459 61

8459 69

8459 70

8460 11

8460 31

8460 39

8460 40

8460 90

8461 10

8461 20

8461 30

8461 40

8461 50

8461 90

8462 10

8462 21

8462 29

8462 31

8462 39

8462 41

8462 49

8462 91

8462 99

8463 10

8463 20

8463 30

8463 90

8464 10

8464 20

8464 90

8465 10

8465 91

8465 92

8465 93

8465 94

8465 95

8465 96

8465 99

8466 10

8466 20

8466 30

8466 91

8466 92

8466 93

8466 94

8467 81

8470 50

8474 10

8474 20

8474 31

8474 32

8474 39

8474 80

8474 90

8477 51

8477 59

8477 90

8479 10

8479 20

8479 30

8479 40

8479 81

8479 82

8479 89

8479 90

8483 10

8483 20

8483 30

8483 50

8483 60

8483 90

8484 10

8484 90

8516 50

8517 10

8517 40

8517 81

8518 10

8525 10

8525 20

8532 21

8532 29

8536 90 01

8536 90 10

8536 90 20

8541 30

8541 50

8546 10

8546 20

8601 10

8601 20

8602 10

8602 90

8603 10

8603 90

8604 00

8605 00

8606 10

8606 20

8606 30

8606 91

8606 92

8606 99

8607 11

8607 12

8607 19

8607 21

8607 29

8607 30

8607 91

8607 99

8701 10

8703 32 19

8708 50

8708 60

8708 70

8712 00

8713 10

8713 90

9001 10

9003 11

9004 10

9004 90

9008 20

9018 20

9018 32

9018 39

9018 41

9018 49

9018 50

9026 10

9026 20

9026 80

9026 90

9027 10

9028 90

9029 20

9029 90

9030 81

9030 89

9031 40

9031 80

9032 20

9032 81

9105 11

9403 10

9403 20

9403 90

9405 91

9506 99

9606 10

9606 21

9606 30

9607 11

9607 19

9607 20

9615 11

9615 19

9615 90

ANNEX IV

LIST OF PRODUCTS REFERRED TO IN ARTICLE 11(3)

2523 29

2523 90

2801 10

2804 30

2804 40

2806 10

2811 21

2815 12

2823 00

2828 90

2833 22

2835 31

2840 30

2847 00

2849 10

2912 11

2917 31

2917 32

2917 33

2917 35

2931 00

3206 10

3208 10

3208 20

3208 90

3209 10

3211 00

3214 10

3402 20

3406 00

3602 00

3603 00

3823 90 70

3823 90 81

3823 90 83

3823 90 85

3823 90 87

3823 90 91

3823 90 93

3823 90 95

3918 10

3922 10

3923 21

4201 00

4202 11

4202 12

4202 19

4202 21

4202 22

4202 29

4202 31

4202 32

4202 39

4202 91

4202 92

4202 99

4203 10

4203 21

4203 29

4203 30

4203 40

4204 00

4205 00

4303 10

4303 90

4304 00 90

4410 10

4410 90

4411 11

4411 19

4411 21

4411 29

4411 31

4411 39

4411 91

4411 99

4412 12

4412 19

4412 21

4412 29

4412 91

4412 99

4801 00

4802 52

4802 60

4803 00

4805 70

4805 80

4808 10

4810 11

4810 12

4814 20

4814 30

4816 10

4816 20

4818 10

4818 20

4818 30

4818 40

4819 10

4819 20

4819 40

4819 50

4819 60

4822 10

4822 90

4823 40

4823 59

4823 70

4903 00

6401 10

6401 91

6401 92

6401 99

6402 11

6402 19

6402 20

6402 30

6402 91

6402 99

6403 11

6403 19

6403 20

6403 30

6403 40

6404 11

6404 19

6404 20

6405 10

6405 20

6405 90

6501 00

6502 00

6503 00

6504 00

6505 10

6505 90

6506 10

6506 91

6506 92

6506 99

6507 00

6807 10

6807 90

6808 00

6810 11

6810 19

6810 20

6810 91

6810 99

6811 10

6811 20

6811 30

6811 90

6904 10

6904 90

6905 10

6905 90

7113 11

7113 19

7113 20

7114 11

7114 19

7114 20

7202 21

7202 41

7202 49

7202 99 19

7202 99 30

7202 99 80

7208 90 90

7209 90 90

7211 30 31

7211 30 39

7211 30 50

7211 30 90

7211 41 95

7211 41 99

7211 49 91

7211 49 99

7211 90 19

7211 90 90

7214 10

7215 10

7215 20

7215 30

7215 40

7215 90 90

7216 60

7216 90 50

7216 90 60

7216 90 91

7216 90 93

7216 90 95

7216 90 97

7216 90 98

7217 11

7217 12

7217 13

7217 19

7217 21

7217 22

7217 23

7217 29

7217 31

7217 32

7217 33

7217 39

7218 90 30

7218 90 91

7218 90 99

7219 90 91

7219 90 99

7220 20 31

7220 20 39

7220 20 51

7220 20 59

7220 20 91

7220 20 99

7220 30 51

7220 90 19

7220 90 39

7220 90 90

7222 20

7222 30 59

7222 30 91

7222 30 99

7225 20 90

7225 90 90

7226 10 91

7226 10 99

7226 20 80

7226 92 91

7226 92 99

7226 99 80

7228 10 50

7228 10 90

7228 20 60

7228 40

7228 50

7228 60 81

7228 60 89

7228 70 91

7228 70 99

7229 10

7229 20

7229 90

7301 20

7306 30

7306 40

7306 50

7306 60

7306 90

7307 11

7307 22

7307 23

7307 29

7307 91

7307 92

7307 93

7307 99

7308 30

7309 00

7310 10

7310 21

7310 29

7314 11

7314 19

7317 00

7318 11

7318 12

7318 13

7318 14

7318 15

7318 16

7318 19

7318 21

7318 22

7318 23

7318 24

7318 29

7321 11

7321 12

7321 13

7323 91

7323 92

7323 93

7323 94

7323 99

7325 10

7325 99

7326 20

7407 10

7407 21

7407 22

7407 29

7408 11

7408 19

7408 21

7408 22

7408 29

7419 91

7419 99

7601 20

7604 10

7604 21

7604 29

7605 11

7605 19

7605 21

7605 29

7606 11

7606 12

7606 91

7606 92

7607 11

7607 19

7607 20

7608 10

7608 20

7609 00

7610 10

7612 90

7616 90

7901 20

7904 00

7905 00

7906 00

7907 10

7907 90

8203 10

8203 20

8203 30

8203 40

8204 11

8204 12

8204 20

8205 10

8205 20

8205 30

8205 40

8205 51

8205 59

8205 60

8205 70

8205 80

8205 90

8206 00

8207 11

8207 12

8207 20

8207 40

8207 50

8207 60

8207 70

8207 80

8207 90

8301 10

8301 20

8301 30

8301 40

8301 50

8301 60

8301 70

8302 10

8302 20

8302 30

8302 41

8302 42

8302 49

8302 50

8302 60

8308 10

8308 90

8309 90

8403 10

8407 21

8407 29

8407 31

8407 32

8410 11

8410 12

8410 13

8410 90

8413 11

8413 19

8413 20

8413 30

8413 40

8413 50

8413 60

8413 70

8413 81

8413 82

8413 91

8413 92

8414 10

8414 51

8414 59

8414 60

8415 10

8415 81

8415 82

8415 83

8415 90

8417 20

8417 90

8418 10

8418 21

8418 29

8418 30

8418 40

8418 50

8418 61

8418 69

8418 91

8418 99

8419 20

8419 40

8419 81

8419 89

8421 99

8422 11

8422 19

8422 20

8423 10

8423 20

8423 30

8423 81

8423 82

8423 89

8423 90

8424 10

8424 30

8424 81

8427 10

8427 20

8427 90

8432 40

8433 19

8433 20

8433 30

8433 51

8433 59

8438 10

8450 11

8450 12

8450 19

8451 21

8454 30

8454 90

8455 30

8471 20

8471 92 80

8480 41

8481 10

8481 20

8481 30

8481 40

8481 80

8481 90

8482 10

8483 40

8501 10

8501 20

8501 31

8501 32

8501 40

8501 51

8501 52

8502 11

8502 20

8503 00

8504 10

8504 21

8504 22

8504 23

8504 33

8504 34

8504 40

8504 50

8504 90

8505 11

8505 19

8505 20

8506 11

8506 12

8506 13

8506 20

8507 10

8507 20

8507 80

8507 90

8508 10

8508 20

8508 80

8509 10

8509 20

8509 30

8509 40

8509 80

8509 90

8510 10

8511 10

8511 20

8511 30

8511 40

8511 50

8511 80

8511 90

8512 10

8512 20

8513 10

8514 10 10

8515 11

8515 19

8515 21

8515 29

8515 31

8515 39

8515 80

8515 90

8516 10

8516 21

8516 29

8516 31

8516 32

8516 33

8516 40

8516 60

8516 71

8516 72

8516 79

8516 80

8517 30

8528 10

8528 20

8529 10

8529 90

8530 10

8530 80

8531 10

8531 20

8531 80

8532 10

8532 23

8532 24

8533 29

8533 31

8533 39

8533 40

8533 90

8534 00

8535 10

8535 21

8535 29

8535 30

8535 40

8535 90

8536 10

8536 20

8536 30

8536 41

8536 49

8536 50

8536 61

8536 69

8537 10

8537 20

8538 10

8538 90

8541 10

8542 20

8542 80

8544 41

8544 49

8544 70

8546 90

8547 10

8547 20

8547 90

8701 20 90

8701 90

ex 8702 10 11 (1)

8702 10 19

8702 10 91

8702 10 99

ex 8702 90 11 (2)

8702 90 19

8702 90 31

8702 90 39

8702 90 90

8703 22

8703 23

8703 24

8703 31 90

8703 32 90

8703 33

8703 90

8704 10

8704 21

8704 22

8704 23

8704 31

8704 32

8704 90

8705 10

8705 20

8705 30

8705 40

8705 90

8706 00

8709 11

8709 19

8709 90

8711 10

8711 20

8716 20

8716 31

8716 39

8716 40

8716 80

8801 10

8903 91

8903 92

8903 99

9008 10

9008 30

9013 20

9016 00

9019 10

9019 20

9028 30

9030 31

9030 39

9030 40

9032 10

9032 89

9103 10

9103 90

9105 21

9105 29

9105 91

9105 99

9106 10

9107 00

9404 10

9404 21

9404 29

9404 30

9404 90

9405 10

9405 20

9405 30

9405 40

9405 50

9405 60

9406 00

9603 10

9603 21

9603 29

9603 30

9603 40

9603 50

9603 90

9606 22

>TABLE>

(1) See note for the description of the product refered to.

ANNEX V

>TABLE>

ANNEX VI

LIST OF PRODUCTS REFERRED TO IN ARTICLE 21(2)

>TABLE>

ANNEX VII

LIST OF PRODUCTS REFERRED TO IN ARTICLE 21(4)

Imports into Slovenia of the following products originating in the Community shall be subject to 50 % reduction of the applying duty

>TABLE>

ANNEX VIII(a)

LIST OF PRODUCTS REFERRED TO IN ARTICLE 24

>TABLE>

ANNEX VIII(b)

LIST OF PRODUCTS REFERRED TO IN ARTICLE 24

>TABLE>

ANNEX IX (a)

ESTABLISHMENT: SECTORS RELATED TO THE TRANSITIONAL PERIOD

Reservation to national treatment (these reservations are not to be applied in manner inconsistent with Most-Favoured-Nation treatment):

1. Until two years after the entry into force of the Agreement:

- direct insurance (including co-insurance) except life insurance,

- reinsurance and retrocession.

2. Until three years after the entry into force of the Agreement:

- broker dealer financial services,

- investment fund management companies,

- life insurance.

3. Until four years after the entry into force of the Agreement:

- authorised investment management companies (established on the basis of the Law of March 1994 on investment funds and investment management companies) (1).

4. Until the end of the transitional period:

- investigation and security services,

- exploitation of natural resources (subject to a concession),

- transport services via pipeline on a fee or contractual basis of natural gas,

- dealing and agency activities in real estate.

(1) Restriction on buying over 10 % of the shares of these companies.

ANNEX IX (b)

ESTABLISHMENT: EXCLUDED SECTORS REFERRED TO IN ARTICLE 45

I. Organisation of gambling, betting, lotteries and other similar activities.

II. Dealing and agency activities in cultural and historical monuments and buildings and natural reserves.

These reservations are not to be applied in a manner inconsistent with Most-Favoured-Nation treatment.

ANNEX IX (c)

ESTABLISHMENT: FINANCIAL SERVICES REFERRED TO IN TITLE IV, CHAPTER II

Financial Services: Definitions

A financial service is any service of a financial nature offered by a financial service provider of a party.

Financial services include the following activities:

A. All Insurance and insurance-related services:

1. direct insurance (including co-insurance):

(i) life;

(ii) non-life;

2. reinsurance and retrocession;

3. insurance inter mediation, such as brokerage and agency;

4. services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;

B. Banking and other financial services (excluding insurance):

1. acceptance of deposits and other repayable funds from the public;

2. lending of all types, including, inter alia, consumer-credit, mortgage credit, factoring and financing of commercial transaction;

3. financial leasing;

4. all payment and money transmission services, including credit charge and debit cards, travellers cheques and bankers draft;

5. guarantees and commitments;

6. trading for own account of customers, whether on an exchange, in an over the counter market or otherwise, the following:

(a) money market instruments (cheques, bills, certificates of deposits, etc.),

(b) foreign exchange,

(c) derivative products including, but not limited to, futures and options,

(d) exchange rates and interest rate instruments, including products such as swaps, forward rate agreements, etc.,

(e) transferable securities,

(f) other negotiable instruments and financial assets, including bullion;

7. participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;

8. money broking;

9. asset management, such as cash or portfolio management, all forms of collective investment management, pension-fund management, custodial depository and trust services;

10. settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;

11. advisory intermediation and other auxiliary financial services on all the activities listed in points 1 to 10 above, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy;

12. provision and transfer of financial information, and financial data processing and related software by providers of other financial services.

The following activities are excluded from the definition of financial services:

(a) activities carried out by central banks or by any other public institution in pursuit of monetary and exchange rate policies;

(b) activities conducted by central banks, government agencies or departments, or public institutions, for the account or with the guarantee of the government, except when those activities may be carried out by financial service providers in competition with such public entities;

(c) activities forming part of a statutory system of social security or public retirement plans, except when those activities may be carried by financial service providers in competition with public entities or private institutions.

ANNEX X

INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY RIGHTS REFERRED TO IN ARTICLE 68

1. Paragraph 3 of Article 68 concerns the following multilateral conventions:

- International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome, 1961);

- Protocol relating to the Madrid Agreement concerning the International Registration of Marks (Madrid, 1989);

- Budapest Treaty on the international Recognition of the Deposit of Micro-organisms for the purposes of Patent Procedures (1977, modified in 1980);

- International Convention for the Protection of New Varieties of Plants (UPOV Geneva Act, 1991).

The Association Council may decide that paragraph 3 of Article 68 shall apply to other multilateral conventions.

2. The parties confirm the importance they attach to the obligations arising from the following multilateral conventions:

- Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967 and amended in 1979);

- Madrid Agreement concerning the International Registration of Marks (Stockholm Act, 1967 and amended in 1979);

- Nice Agreement concerning the International Classification of Goods and Services for the purposes of the Registration of Marks (Geneva, 1977 and amended in 1979);

- Patent Cooperation Treaty (Washington, 1970, amended in 1979 and modified in 1984);

- Berne Convention for the Protection of Literary and Artistic Works (Paris Act, 1971).

3. From entry into force of this Agreement, Slovenia shall grant to Community companies and nationals, in respect of the recognition and protection of intellectual, industrial and commercial property, treatment no less favourable than that granted by it to any third country under bilateral agreements.

ANNEX XI

PARTICIPATION OF SLOVENIA IN COMMUNITY PROGRAMMES REFERRED TO IN ARTICLE 106

Slovenia may participate in Community framework programmes, specific programmes, projects or other actions in the fields of:

- research,

- information services,

- the environment,

- education, training and youth,

- social policy and health,

- consumer protection,

- small and medium-sized enterprises,

- tourism,

- culture,

- the audiovisual sector,

- civil protection,

- trade facilitation,

- energy,

- transport, and

- the fight against drugs and drug addiction.

The Association Council may agree to add other fields of Community activities to those listed above, where it is considered to be of mutual interest or to contribute to the attainment of the objectives of the Europe Agreement.

ANNEX XII

CUSTOMS DUTIES ON EXPORTS AND CHARGES HAVING EQUIVALENT EFFECT REFERRED TO ARTICLE 14 (1)

Slovenia shall progressively reduce export charges equivalent to customs duties in accordance with the following timetable:

- 1.1.1996: 7 %

- 1.1.1997: 4 %

- 1.1.1998: 0 %

for the following products:

>TABLE>

ANNEX XIII

EXCHANGE OF LETTERS between the European Community and its Member States, of the one part, and the Republic of Slovenia, of the other part, concerning the provisions of Article 64(2) of the Association Agreement

A. Letter from the Government of the Republic of Slovenia

Sir,

Concerning the provisions of Article 64(2) of the Association Agreement relating to the Community rules on the movement of capital, and in view of Slovenia's accession to the European Union, I would like to confirm the following commitment of the Government of the Republic of Slovenia:

I. to take the measures necessary to allow the citizens of the Member States of the European Union, on a reciprocal basis, the right to purchase property in Slovenia on a non-discriminatory basis by the end of the fourth year from the entry into force of the Association Agreement;

II. to grant to the citizens of the European Union Member States, having permanently resided on the present territory of the Republic of Slovenia for a period of three years, on a reciprocal basis, the right to purchase property from the entry into force of the Association Agreement.

I would be grateful if you could confirm the agreement of the European Communities to the above.

For the Government of the Republic of Slovenia

B. Letter from the European Community and its Member States

Sir,

I have the honour to acknowledge receipt of your letter concerning the provisions of Article 64(2) of the Association Agreement relating to Community rules on the movement of capital, which reads as follows:

'Concerning the provisions of Article 64(2) of the Association Agreement relating to the Community rules on the movement of capital, and in view of Slovenia's accession to the European Union, I would like to confirm the following commitment of the Government of the Republic of Slovenia:

I. to take the measures necessary to allow the citizens of the Member States of the European Union, on a reciprocal basis, the right to purchase property in Slovenia on a non-discriminatory basis by the end of the fourth year from the entry into force of the Association Agreement;

II. to grant to the citizens of the European Union Member States, having permanently resided on the present territory of the Republic of Slovenia for a period of three years, on a reciprocal basis, the right to purchase property from the entry into force of the Association Agreement.

I would be grateful if you could confirm the agreement of the European Communities to the above.`

The European Community and its Member States have the honour to confirm their agreement with the commitment taken in this letter, on a reciprocal basis, by your Government.

On behalf of the European Community and its Member States

PROTOCOL 1 on textile and clothing products

Article 1

This Protocol applies to the textile and clothing products (hereinafter 'textile products`) listed in Section XI (Chapters 50 to 63) of the combined nomenclature of the Community.

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 Slovenia as defined in Protocol 4 of this Agreement other than those listed in Annex I to this Protocol (present Annex V of the Agreement between the European Economic Community and Slovenia on trade in textile products, initialled on 23 July 1993) shall be abolished on the date of entry into force of this Agreement.

2. Customs duties on imports into the Community on products of Slovenian origin listed in Annex I to this Protocol shall be suspended within the limits of annual Community tariff ceilings increasing progressively with a view to complete abolition of customs duties on imports of the products concerned by the end of the second year after entry into force of the Agreement.

3. The duties applied to direct imports into Slovenia of textile products falling within Section XI (Chapters 50 to 63) of the combined nomenclature and originating in the Community as defined in Protocol 4 of the Agreement, shall be abolished on the date of entry into force of the Agreement except for products listed in Annex II (a) and II (b) to this Protocol for which the rates of duties shall be progressively reduced as provided therein.

4. The customs duties applicable to compensating products imported into the Community which originate in Slovenia within the meaning of Protocol 4 of this Agreement, and which result from operations in Slovenia in accordance with Council Regulation (EC) No 3036/94, shall be eliminated on the date of entry into force of this Agreement. However, such products do not need to be subject to the arrangements or the specific measures referred to in Article 1(3) or the annual limits referred to in Article 2(2)(b) of that Regulation.

5. Subject to this Protocol, the provisions of the Agreement and in particular Articles 12 and 13 of the Agreement shall apply to trade in textile products between the parties.

Article 3

The quantitative arrangements and other related issues regarding exports of textile products originating in Slovenia to the Community and originating in the Community to the Republic of Slovenia shall be stipulated in an additional protocol to the Agreement between the European Economic Community and the Republic of Slovenia on trade in textile products to be concluded before 31 December 1995. In the absence of an Additional Protocol, the provisions of the said Agreement on Trade in Textile products, initialled on 23 July 1993, as amended by the Agreement reached on 15 December 1994 to take account of the enlargement of the European Communities, shall continue to apply.

Article 4

From the entry into force of this Agreement no new quantitative restrictions or measures of equivalent effect shall be imposed except as provided for under the said Agreement and its Protocols.

ANNEX I

>TABLE>

ANNEX II (a)

CUSTOMS DUTIES REFERRED TO IN ARTICLE 2(3)

Customs duties on imports into the Republic of Slovenia of textile products listed in this Annex and originating in the Community shall be progressively reduced in accordance with the following timetable:

- on 1 January 1996 each duty shall be reduced to 80 % of the basic duty,

- on 1 January 1997 each duty shall be reduced to 55 % of the basic duty,

- on 1 January 1998 each duty shall be reduced to 30 % of the basic duty,

- on 1 January 1999 each duty shall be reduced to 15 % of the basic duty,

- on 1 January 2000 the remaining duties shall be abolished.

5111 11

5111 19

5111 20

5111 30

5111 90

5205 11

5205 12

5205 13

5205 14

5205 15

5205 21

5205 22

5205 23

5205 24

5205 25

5205 31

5205 32

5205 33

5205 34

5205 35

5205 41

5205 42

5205 43

5205 44

5205 45

5206 11

5206 12

5206 13

5206 14

5206 15

5206 21

5206 22

5206 23

5206 24

5206 25

5206 31

5206 32

5206 33

5206 34

5206 35

5206 41

5206 42

5206 43

5206 44

5206 45

5207 10

5207 90

5308 20

5310 10

5401 10

5401 20

5402 31

5402 32

5402 33

5402 41

5402 51

5402 52

5407 10

5407 20

5407 30

5407 41

5407 42

5407 43

5407 44

5407 52

5407 53

5407 54

5407 60

5407 71

5407 72

5407 73

5407 74

5408 10

5408 21

5408 22

5408 24

5505 10

5505 20

5508 10

5508 20

5509 31

5509 32

5509 42

5509 51

5509 61

5509 62

5509 92

5510 11

5510 12

5511 10

5511 20

5511 30

5512 11

5512 19

5512 21

5512 29

5512 91

5512 99

5513 11

5513 12

5513 13

5513 19

5513 21

5513 23

5513 29

5513 31

5513 32

5513 33

5513 39

5513 41

5513 42

5513 43

5513 49

5514 11

5514 12

5514 13

5514 19

5514 22

5514 23

5514 31

5514 32

5514 33

5514 39

5514 41

5514 42

5514 43

5514 49

5515 12

5515 13

5515 19

5515 22

5515 29

5515 91

5515 92

5515 99

5516 11

5516 12

5516 13

5516 14

5516 21

5516 22

5516 23

5516 24

5516 31

5516 32

5516 33

5516 34

5516 41

5516 42

5516 43

5516 44

5516 91

5516 92

5516 93

5516 94

5601 10

5601 21

5601 22

5601 29

5601 30

5606 00

5607 29

5607 41

5801 21

5801 22

5801 23

5801 24

5801 31

5801 32

5801 33

5801 34

5801 90

5804 10

5804 21

5804 29

5804 30

5806 20

5806 31

5806 32

5806 39

5807 10

5807 90

5903 10

5903 20

5903 90

5911 20

5911 32

5911 90

6001 29

6001 91

6001 92

6002 10

6002 20

6002 91

6002 99

6116 91

6116 92

6116 93

6116 99

6203 31

6203 41 10

6203 41 90

6203 42 11

6203 42 31

6203 42 35

6204 62 31

6204 62 33

6204 62 39

6204 62 51

6204 62 59

6204 62 90

6210 10

6210 30

6210 40

6210 50

6216 00

6302 21

6302 31

6302 60

6307 20

6308 00

ANNEX II (b)

CUSTOMS DUTIES REFERRED TO IN ARTICLE 2(3)

Customs duties on imports into the Republic of Slovenia of textile products listed in this Annex and originating in the Community shall be progressively reduced in accordance with the following timetable:

- on 1 January 1996 each duty shall be reduced to 90 % of the basic duty,

- on 1 January 1997 each duty shall be reduced to 70 % of the basic duty,

- on 1 January 1998 each duty shall be reduced to 45 % of the basic duty,

- on 1 January 1999 each duty shall be reduced to 35 % of the basic duty,

- on 1 January 2000 each duty shall be reduced to 20 % of the basic duty,

- on 1 January 2001 the remaining duties shall be abolished.

5112 11

5112 19

5112 20

5112 30

5112 90

5208 11

5208 12

5208 13

5208 19

5208 21

5208 22

5208 23

5208 29

5208 31

5208 32

5208 33

5208 39

5208 41

5208 42

5208 43

5208 49

5208 51

5208 52

5208 53

5208 59

5209 11

5209 12

5209 19

5209 21

5209 22

5209 29

5209 31

5209 32

5209 39

5209 41

5209 42

5209 43

5209 49

5209 51

5209 52

5209 59

5210 11

5210 12

5210 19

5210 21

5210 22

5210 29

5210 31

5210 32

5210 39

5210 41

5210 42

5210 49

5210 51

5210 52

5210 59

5211 11

5211 12

5211 19

5211 21

5211 22

5211 29

5211 31

5211 32

5211 39

5211 41

5211 42

5211 43

5211 49

5211 51

5211 52

5211 59

5212 11

5212 12

5212 13

5212 14

5212 15

5212 21

5212 22

5212 23

5212 24

5212 25

5514 21

5602 10

5602 21

5602 29

5602 90

5603 00

5607 49

5607 50

5801 10

5801 25

5801 26

5801 35

5801 36

5802 11

5802 19

5802 20

5802 30

5803 10

5803 90

5808 10

5808 90

5810 10

5810 91

5810 92

5810 99

5811 00

5904 91

5906 10

5906 91

5906 99

6001 21

6001 22

6001 99

6002 30

6002 41

6002 42

6002 43

6002 49

6002 92

6002 93

6101 10

6101 90

6102 10

6102 30

6102 90

6103 11

6103 12

6103 19

6103 21

6103 22

6103 23

6103 29

6103 31

6103 32

6103 33

6103 39

6103 41

6103 42

6103 43

6103 49

6104 11

6104 12

6104 13

6104 19

6104 21

6104 22

6104 23

6104 29

6104 31

6104 32

6104 33

6104 39

6104 41

6104 42

6104 43

6104 44

6104 49

6104 51

6104 52

6104 53

6104 59

6104 61

6104 62

6104 63

6104 69

6105 90

6106 10

6106 20

6106 90

6107 11

6107 12

6107 19

6107 21

6107 22

6107 29

6107 91

6107 92

6107 99

6108 11

6108 19

6108 21

6108 22

6108 29

6108 31

6108 32

6108 39

6108 91

6108 92

6108 99

6109 10

6109 90

6110 10

6110 20

6110 30

6110 90

6111 10

6111 20

6111 30

6111 90

6112 11

6112 12

6112 19

6112 20

6112 31

6112 39

6112 41

6112 49

6113 00

6114 10

6114 20

6114 30

6114 90

6115 11

6115 12

6115 19

6115 20

6115 91

6115 92

6115 93

6115 99

6116 10

6117 10

6117 20

6117 80

6117 90

6201 11

6201 12

6201 13

6201 19

6201 91

6201 92

6201 93

6201 99

6202 11

6202 12

6202 13

6202 19

6202 91

6202 92

6202 93

6202 99

6203 11

6203 12

6203 19

6203 21

6203 22

6203 23

6203 29

6203 32

6203 33

6203 39

6204 11

6204 12

6204 13

6204 19

6204 21

6204 22

6204 23

6204 29

6204 31

6204 32

6204 33

6204 39

6204 41

6204 42

6204 43

6204 44

6204 49

6204 51

6204 52

6204 53

6204 59

6204 61

6204 69

6205 10

6205 90

6206 10

6206 20

6206 30

6206 40

6206 90

6207 11

6207 19

6207 21

6207 22

6207 29

6207 91

6207 92

6207 99

6208 11

6208 19

6208 21

6208 22

6208 29

6208 91

6208 92

6208 99

6209 10

6209 20

6209 30

6209 90

6211 11

6211 12

6211 20

6211 31

6211 32

6211 33

6211 39

6211 41

6211 42

6211 43

6211 49

6212 10

6212 20

6212 30

6212 90

6213 10

6213 20

6213 90

6214 10

6214 20

6214 30

6214 40

6214 90

6215 10

6215 20

6215 90

6217 10

6217 90

6301 30

6301 40

6301 90

6302 10

6302 29

6302 39

6302 40

6302 51

6302 52

6302 53

6302 59

6302 91

6302 92

6302 93

6302 99

6303 11

6303 12

6303 19

6303 91

6303 92

6303 99

6304 11

6304 19

6304 91

6304 92

6304 93

6304 99

6305 10

6305 20

6305 31

6305 39

6305 90

6306 11

6306 12

6306 19

6306 21

6306 22

6306 29

6306 31

6306 39

6306 41

6306 49

6306 91

6306 99

6307 10

6307 90

6309 00

6310 10

6310 90

PROTOCOL 2 on products covered by the Treaty establishing the European Coal and Steel Community (ECSC)

Article 1

This Protocol shall apply to the products listed in Annex I to the ECSC Treaty and defined in the Common Customs Tariff (1).

CHAPTER I ECSC steel products

Article 2

1. Once the Agreement enters into force, ECSC steel products originating in Slovenia shall be imported into the Community free of duty.

2. Once the Agreement enters into force, ECSC steel products originating in the Community shall be imported into Slovenia free of duty, except in the case of the products listed in Annex I to this Protocol. Customs duties on imports of such products shall be progressively reduced according to the following timetable:

- on 1 January 1996 each duty shall be reduced to 80 % of the basic duty;

- on 1 January 1997 each duty shall be reduced to 55 % of the basic duty;

- on 1 January 1998 each duty shall be reduced to 30 % of the basic duty;

- on 1 January 1999 each duty shall be reduced to 15 % of the basic duty;

- on 1 January 2000 the remaining duties shall be abolished.

Article 3

1. Quantitative restrictions on imports into the Community of ECSC steel products originating in Slovenia, and measures having an equivalent effect, shall be eliminated on the date on which the Agreement enters into force.

2. Quantitative restrictions on imports into Slovenia of ECSC steel products originating in the Community, and measures having an equivalent effect, shall be eliminated on the date on which the Agreement enters into force.

CHAPTER II ECSC coal products

Article 4

Starting on the date on which the Agreement enters into force, ECSC coal products originating in Slovenia shall be imported into the Community free of duty.

Article 5

Starting on the date on which the Agreement enters into force, ECSC coal products originating in the Community shall be imported into Slovenia free of duty.

Article 6

1. Quantitative restrictions on imports into the Community of ECSC coal products originating in Slovenia, and measures having an equivalent effect, shall be eliminated on the date on which the Agreement enters into force.

The Republic of Austria may, however, until 31 December 1996, maintain with respect to Slovenia, the import restrictions which it applied on 1 January 1994 in respect of lignite falling under code 2702 10 00 of the Combined Nomenclature.

2. Quantitative restrictions on imports into Slovenia of ECSC coal products originating in the Community, and measures having an equivalent effect, shall be eliminated on the date on which the Agreement enters into force.

CHAPTER III Common provisions

Article 7

1. The following shall be incompatible with the proper functioning of the Agreement in so far as they may affect trade between the Community and Slovenia:

(i) all cooperation or concentration 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 Slovenia as a whole or in a substantial part thereof;

(iii) state aid of any kind, except in instances in which derogations are allowed under the terms of the ECSC Treaty.

2. Any practice contrary to the provisions of this Article shall be assessed on the basis of criteria arising from the application of the rules contained in Articles 65 and 66 of the ECSC Treaty and Article 85 of the EC Treaty and of the rules on state aid, including secondary legislation.

3. Within three years of the Agreement's entry into force, the Association Council shall adopt the necessary rules for the implementation of paragraphs 1 and 2.

4. The parties shall recognise that as a derogation from the provisions of paragraph 1(iii) Slovenia may exceptionally, for the first five years following the Agreement's entry into force, grant state aid for restructuring purposes in connection with ECSC steel products, provided that:

- the aid helps the recipient firms to achieve viability under normal market conditions by the end of the restructuring period;

- the amount and degree of aid provided are limited to what is strictly necessary to restore viability and are progressively reduced;

- the restructuring programme is linked to a global rationalisation and capacity-reduction plan for Slovenia.

5. Each party shall ensure transparency with regard to state aid by conducting a full and continuous exchange of information with the other party on the amount, degree and aim of the aid and by including in that information a detailed restructuring plan.

6. If the Community or Slovenia consider that a particular practice is incompatible with the terms of paragraph 1, as amended by paragraph 4, and:

- it is not suitably dealt with by the implementing rules referred to in paragraph 3, or

- no such rules exist, and the practice is causing or threatening to cause harm to the interests of the other party or material injury to its domestic industry,

the injured party may take appropriate measures if consultations lasting a maximum of thirty working days fail to find a solution. Such consultations must be held within thirty working days of being officially requested.

In the case of practices which are incompatible with the terms of paragraph 1(iii), the appropriate measures in question may be implemented only in the manner and under the conditions laid down by the General Agreement on Tariffs and Trade (GATT) or in accordance with any other appropriate instrument applicable between the parties and negotiated under GATT auspices.

Article 8

The provisions of Articles 12, 13, 14 and 15 of the Agreement shall apply to trade in ECSC products between the parties.

Article 9

The parties agree that one of the special bodies established by the Association Council shall be a contact group responsible for discussing the implementation of this Protocol.

(1) OJ L 345, 31.12.1994, p. 1.

ANNEX I

LIST OF PRODUCTS REFERRED TO IN ARTICLE 2(2)

7202 99 11

7208 13 10

7208 13 91

7208 13 95

7208 13 98

7208 14 10

7208 14 91

7208 14 99

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 33 10

7208 33 91

7208 33 99

7208 34 10

7208 34 90

7208 35 10

7208 35 90

7208 41 00

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

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

7213 10 00

7213 31 20

7213 31 81

7213 31 89

7213 39 10

7213 39 90

7213 41 00

7213 49 00

7213 50 20

7213 50 81

7213 50 89

7214 20 00

7214 40 10

7214 40 20

7214 40 51

7214 40 59

7214 40 80

7214 50 10

7214 50 31

7214 50 39

7214 50 90

7214 60 00

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

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 21

7222 10 29

7222 10 31

7222 10 39

7222 10 81

7222 10 89

7225 10 10

7225 10 91

7225 10 99

7225 20 20

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 31

7226 10 39

7226 20 20

7226 91 10

7226 91 90

7226 92 10

7226 99 20

7227 10 00

7227 20 00

7227 90 10

7227 90 30

7227 90 50

7227 90 70

7228 10 10

7228 10 30

7228 20 11

7228 20 19

7228 20 30

7228 30 20

7228 30 41

7228 30 49

7228 30 61

7228 30 69

7228 30 70

7228 30 89

7228 60 10

7228 70 10

7228 70 31

7301 10 00

PROTOCOL 3 on Trade between Slovenia and the Community in processed agricultural products

Article 1

1. The Community and Slovenia shall apply to processed agricultural products the duties listed in Annex I and Annex II respectively in accordance with the conditions mentioned therein.

2. The Association Council shall decide on:

- the extension of the list of processed agricultural products under this Protocol;

- the amendment of the duties mentioned in the Annexes;

- the increase or abolition of tariff quotas.

3. The Association Council may replace the duties established by this Protocol by a regime established on the basis of the respective market prices of the Community and Slovenia of the agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol. It shall establish the list of goods subject to these amounts and as a consequence, the list of basic products; to this end, it shall decide the general rules of application.

Article 2

The duties applied conforming to Article 1 may be reduced by decision of the Association Council:

- when in trade between the Community and Slovenia the duties applied to the basic agricultural products are reduced, or

- in response to reductions resulting from mutual concessions relating to processed agricultural products.

The reductions provided for under the first indent shall be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deducted from the duties applied to these basic agricultural products.

Article 3

The Community and Slovenia shall inform each other of the administrative arrangements adopted for the products covered by this Protocol.

These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

ANNEX I

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ANNEX II

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PROTOCOL 4 concerning the definition of the concept of 'originating products` and methods of administrative cooperation (1)

TITLE I GENERAL PROVISIONS

Article 1 Definitions

For the purposes of this Protocol:

(a) 'manufacture` means any kind of working or processing including assembly or specific operations;

(b) 'material` means any ingredient, raw material, component or part, etc., used in the manufacture of the product;

(c) 'product` means the product being manufactured, even if it is intended for later use in another manufacturing operation;

(d) 'goods` means both materials and products;

(e) 'customs value` means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation);

(f) 'ex-works price` means the price paid for the product ex-works to the manufacturer in the Community or Slovenia in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;

(g) 'value of materials` means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the Community or Slovenia;

(h) 'value of originating materials` means the value of such materials as defined in subparagraph (g) applied mutatis mutandis;

(i) 'added value` shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Slovenia;

(j) 'chapters` and 'headings` mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as 'the Harmonised System` or 'HS`;

(k) 'classified` refers to the classification of a product or material under a particular heading;

(l) 'consignment` means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;

(m) 'territories` includes territorial waters.

TITLE II DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS`

Article 2 General requirements

1. For the purpose of implementing this Agreement, the following products shall be considered as originating in the Community:

(a) products wholly obtained in the Community within the meaning of Article 5 of this Protocol;

(b) products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 6 of this Protocol;

(c) goods originating in the European Economic Area (EEA) within the meaning of Protocol 4 to the Agreement on the European Economic Area.

2. For the purpose of implementing this Agreement, the following products shall be considered as originating in Slovenia:

(a) products wholly obtained in Slovenia within the meaning of Article 5 of this Protocol;

(b) products obtained in Slovenia incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Slovenia within the meaning of Article 6 of this Protocol.

Article 3 Cumulation in the European Community

1. Without prejudice to the provisions of Article 2(1) products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein (2)) or Turkey (3) in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Slovenia, through the Commission of the European Communities, with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The Commission of the European Communities shall publish in the Official Journal of the European Communities (C series) the date on which the cumulation, provided for in this Article, may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4 Cumulation in Slovenia

1. Without prejudice to the provisions of Article 2(2), products shall be considered as originating in Slovenia if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein (4)) or Turkey (5) in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Slovenia and each of these countries, provided that the working or processing carried out in Slovenia goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Slovenia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Slovenia only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Slovenia.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Slovenia, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Slovenia shall provide the Community, through the Commission of the European Communities, with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The Commission of the European Communities shall publish in the Official Journal of the European Communities (C series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 5 Wholly obtained products

1. The following shall be considered as wholly obtained in the Community or Slovenia:

(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 outside the territorial waters of the Community or Slovenia 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, including used tyres fit only for retreading or for use as waste;

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

(j) products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;

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

2. The terms 'their vessels` and 'their factory ships` in paragraph 1 (f) and (g) shall apply only to vessels and factory ships:

(a) which are registered or recorded in an EC Member State or in Slovenia;

(b) which sail under the flag of an EC Member State or of Slovenia;

(c) which are owned to an extent of at least 50 % by nationals of EC Member States or of Slovenia, or by a company with its head office in one of these States, 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 EC Member States or of Slovenia and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d) of which the master and officers are nationals of EC Member States or of Slovenia; and

(e) of which at least 75 % of the crew are nationals of EC Member States or of Slovenia.

Article 6 Sufficiently worked or processed products

1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that:

(a) their total value does not exceed 10 % of the ex-works price of the product;

(b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3. Paragraphs 1 and 2 shall apply except as provided in Article 7.

Article 7 Insufficient working or processing operations

1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 6 are satisfied:

(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 packages;

(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 mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in the Community or Slovenia;

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

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

(h) slaughter of animals.

2. All the operations carried out in either the Community or Slovenia on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 8 Unit of qualification

1. The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System.

Accordingly, it follows that:

(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification;

(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol.

2. Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 9 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 which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 10 Sets

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

Article 11 Neutral elements

In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

(a) energy and fuel;

(b) plant and equipment;

(c) machines and tools;

(d) goods which do not enter and which are not intended to enter into the final composition of the product.

TITLE III TERRITORIAL REQUIREMENTS

Article 12 Principle of territoriality

1. Except as provided for in Article 2(1)(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Slovenia.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Slovenia to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Slovenia on materials exported from the Community or Slovenia and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Slovenia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

(i) the reimported goods have been obtained by working or processing the exported materials; and

(ii) the total added value acquired outside the Community or Slovenia by applying the provisions of this Article does not exceed 10 % of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Slovenia. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Slovenia by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, 'total added value` shall be taken to mean all costs arising outside the Community or Slovenia, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Slovenia shall be done under the outward processing arrangements, or similar arrangements.

Article 13 Direct transport

1. The preferential treatment provided for under the Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and Slovenia or through the territories of the other countries referred to in Articles 3 and 4. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

Originating products may be transported by pipeline across territory other than that of the Community or Slovenia.

2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a) a single transport document covering the passage from the exporting country through the country of transit; or

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

(i) giving an exact description of the products,

(ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used, and

(iii) certifying the conditions under which the products remained in the transit country, or

(c) failing these, any substantiating documents.

Article 14 Exhibitions

1. Originating products, sent for exhibition in a country other than those referred to in Articles 3 and 4 and sold after the exhibition for importation in the Community or Slovenia shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from the Community or Slovenia 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 a person in the Community or Slovenia;

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

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

2. A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of 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 organised 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.

TITLE IV DRAWBACK OR EXEMPTION

Article 15 Prohibition of drawback of, or exemption from, customs duties

1. (a) Non-originating materials used in the manufacture of products originating in the Community, in Slovenia or in one of the other countries referred to in Articles 3 and 4 for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community or Slovenia to drawback of, or exemption from, customs duties of whatever kind.

(b) Products falling within Chapter 3 and heading Nos 1604 and 1605 of the Harmonised System and originating in the Community within the meaning of this Protocol as provided for in Article 2(1)(c), for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community to drawback of, or exemption from, customs duties of whatever kind.

2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in the Community or Slovenia to materials used in the manufacture and to products covered by paragraph 1(b) above, where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there.

3. The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid.

4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of Article 8(2), accessories, spare parts and tools within the meaning of Article 9 and products in a set within the meaning of Article 10 when such items are non-originating.

5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the kind to which the Agreement applies. Furthermore, they shall not preclude the application of an export refund system for agricultural products, applicable upon export in accordance with the provisions of the Agreement.

6. Notwithstanding paragraph 1, Slovenia may apply arrangements for drawback of, or exemption from, customs duties or charges having an equivalent effect, applicable to materials used in the manufacture of originating products, subject to the following provisions:

(a) a 5 % rate of customs charge shall be retained in respect of products falling within Chapters 25 to 49 and 64 to 97 of the Harmonised System, or such lower rate as is in force in Slovenia;

(b) a 10 % rate of customs charge shall be retained in respect of products falling within Chapters 50 to 63 of the Harmonised System, or such lower rate as is in force in Slovenia.

The provisions of this paragraph shall apply until 31 December 2000 and may be reviewed by common accord.

TITLE V PROOF OF ORIGIN

Article 16 General requirements

1. Products originating in the Community shall, on importation into Slovenia and products originating in Slovenia shall, on importation into the Community benefit from this Agreement upon submission of either:

(a) a movement certificate EUR.1, a specimen of which appears in Annex III; or

(b) in the cases specified in Article 21(1), a declaration, the text of which appears in Annex IV, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the 'invoice declaration`).

2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 26, benefit from this Agreement without it being necessary to submit any of the documents referred to above.

Article 17 Procedure for the issue of a movement certificate EUR.1

1. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative.

2. For this purpose, the exporter or his authorised representative shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Annex III. These forms shall be completed in one of the languages in which this Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting country. If they are handwritten, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

3. The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting country where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4. A movement certificate EUR.1 shall be issued by the customs authorities of an EC Member State or Slovenia if the products concerned can be considered as products originating in the Community, Slovenia or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol.

5. The issuing customs authorities shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. The issuing customs authorities shall also ensure that the forms referred to in paragraph 2 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.

6. The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the certificate.

7. A movement certificate EUR.1 shall be issued by the customs authorities and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 18 Movement certificates EUR.1 issued retrospectively

1. Notwithstanding Article 17(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:

(a) it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or

(b) it is demonstrated to the satisfaction of the customs authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons.

2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request.

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.

4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

'NACHTRÄGLICH AUSGESTELLT`, 'DELIVRE A POSTERIORI`, 'RILASCIATO A POSTERIORI`, 'AFGEGEVEN A POSTERIORI`, 'ISSUED RETROSPECTIVELY`, 'UDSTEDT EFTERFØLGENDE`, 'ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ`, 'EXPEDIDO A POSTERIORI`, 'EMITIDO A POSTERIORI`, 'ANNETTU JÄLKIKÄTEEN`, 'UFTÄRDAT I EFTERHAND`, 'IZDANO NAKNADNO`.

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

Article 19 Issue of a duplicate movement certificate EUR.1

1. In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may apply 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`, 'ÁÍÔÉÃÑÁÖÏ`, 'DUPLICADO`, 'SEGUNDA VIA`, 'KAKSOISKAPPALE`, 'DVOJNIK`.

3. The endorsement referred to in paragraph 2 shall be inserted in the 'Remarks` box of the duplicate 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 20 Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously

When originating products are placed under the control of a customs office in the Community or Slovenia, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 for the purpose of sending all or some of these products elsewhere within the Community or Slovenia. The replacement movement certificate(s) EUR.1 shall be issued by the customs office under whose control the products are placed.

Article 21 Conditions for making out an invoice declaration

1. An invoice declaration as referred to in Article 16(1)(b) may be made out:

(a) by an approved exporter within the meaning of Article 22, or

(b) by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed ECU 6 000.

2. An invoice declaration may be made out if the products concerned can be considered as products originating in the Community, Slovenia or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol.

3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting country, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex IV, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the domestic law of the exporting country. If the declaration is handwritten, it shall be written in ink in printed characters.

5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 22 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him.

6. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing country no longer than two years after the importation of the products to which it relates.

Article 22 Approved exporter

1. The customs authorities of the exporting country may authorise any exporter who makes frequent shipments of products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Protocol.

2. The customs authorities may grant the status of approved exporter subject to any conditions which they consider appropriate.

3. The customs authorities shall grant to the approved exporter a customs authorisation number which shall appear on the invoice declaration.

4. The customs authorities shall monitor the use of the authorisation by the approved exporter.

5. The customs authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorisation.

Article 23 Validity of proof of origin

1. A proof of origin shall be valid for four months from the date of issue in the exporting country, and must be submitted within the said period to the customs authorities of the importing country.

2. Proofs of origin which are submitted to the customs authorities of the importing country after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.

3. In other cases of belated presentation, the customs authorities of the importing country may accept the proofs of origin where the products have been submitted before the said final date.

Article 24 Submission of proof of origin

Proofs of origin shall be submitted to the customs authorities of the importing country in accordance with the procedures applicable in that country. The said authorities may require a translation of a proof of origin and 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 25 Importation by instalments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonised System falling within Sections XVI and XVII or heading Nos 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 26 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 submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, this declaration can be made on the customs declarations CN 22/CN 23 or on a sheet of paper annexed to that document.

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.

3. Furthermore, the total value of these products shall not exceed ECU 500 in the case of small packages or ECU 1 200 in the case of products forming part of travellers' personal luggage.

Article 27 Supporting documents

The documents referred to in Article 17(3) and Article 21(3) used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in the Community, Slovenia or in one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol may consist inter alia of the following:

(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal book-keeping;

(b) documents proving the originating status of materials used, issued or made out in the Community or Slovenia where these documents are used in accordance with domestic law;

(c) documents proving the working or processing of materials in the Community or Slovenia, issued or made out in the Community or Slovenia, where these documents are used in accordance with domestic law;

(d) movement certificates EUR.1 or invoice declarations proving the originating status of materials used, issued or made out in the Community or Slovenia in accordance with this Protocol, or in one of the other countries referred to in Article 4, in accordance with rules of origin which are identical to the rules in this Protocol.

Article 28 Preservation of proof of origin and supporting documents

1. The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least three years the documents referred to in Article 17(3).

2. The exporter making out an invoice declaration shall keep for at least three years a copy of this invoice declaration as well as the documents referred to in Article 21(3).

3. The customs authorities of the exporting country issuing a movement certificate EUR.1 shall keep for at least three years the application form referred to in Article 17(2).

4. The customs authorities of the importing country shall keep for at least three years the movement certificates EUR.1 and the invoice declaration submitted to them.

Article 29 Discrepancies and formal errors

1. The discovery of slight discrepancies between the statements made in the proof of origin 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 proof of origin null and void if it is duly established that this document does correspond to the products submitted.

2. Obvious formal errors such as typing errors on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

Article 30 Amounts expressed in ECU

1. Amounts in the national currency of the exporting country equivalent to the amounts expressed in ECU shall be fixed by the exporting country and communicated to the importing countries through the European Commission.

2. When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country. When the products are invoiced in the currency of another EC Member State, Slovenia or one of the other countries referred to in Articles 3 and 4, the importing country shall recognise the amount notified by the country concerned.

3. The amounts to be used in any given national currency shall be the equivalent in that national currency of the amounts expressed in ECU as at the first working day in October 1996.

4. The amounts expressed in ECU and their equivalents in the national currencies of the EC Member States and Slovenia shall be reviewed by the Association Committee at the request of the Community or Slovenia. When carrying out this review, the Association Committee shall ensure that there will be no decrease in the amounts to be used in any national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in ECU.

TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31 Mutual assistance

1. The customs authorities of the EC Member States and of Slovenia shall provide each other, through the European Commission, with specimen impressions of stamps used in their customs offices for the issue of movement certificates EUR.1 and with the addresses of the customs authorities responsible for verifying those certificates and invoice declarations.

2. In order to ensure the proper application of this Protocol, the Community and Slovenia shall assist each other, through the competent customs administrations, in checking the authenticity of the movement certificates EUR.1 or the invoice declarations and the correctness of the information given in these documents.

Article 32 Verification of proofs of origin

1. Subsequent verifications of proofs of origin shall be carried out at random or whenever the customs authorities of the importing country have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Protocol.

2. For the purposes of implementing the provisions of paragraph 1, the customs authorities of the importing country shall return the movement certificate EUR.1 and the invoice, if it has been submitted, the invoice declaration, or a copy of these documents, to the customs authorities of the exporting country giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof or origin is incorrect shall be forwarded in support of the request for verification.

3. The verification shall be carried out by the customs authorities of the exporting country. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate.

4. If the customs authorities of the importing country decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary.

5. The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the Community, Slovenia or one of the other countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol.

6. 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 customs authorities shall, except in exceptional circumstances, refuse entitlement to the preferences.

Article 33 Dispute settlement

Where disputes arise in relation to the verification procedures of Article 32 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the Association Committee.

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

Article 34 Penalties

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

Article 35 Free zones

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

2. By means of an exemption to the provisions contained in paragraph 1, when products originating in the Community or Slovenia are imported into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new EUR.1 certificate at the exporter's request, if the treatment or processing undergone is in conformity with the provisions of this Protocol.

TITLE VII CEUTA AND MELILLA

Article 36 Application of the Protocol

1. The term 'Community` used in Article 2 does not cover Ceuta and Melilla.

2. Products originating in Slovenia, when imported into Ceuta or Melilla, shall enjoy in all respects the same customs regime as that which is applied to products originating in the customs territory of the Community under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities. Slovenia shall grant to imports of products covered by the Agreement and originating in Ceuta and Melilla the same customs regime as that which is granted to products imported from and originating in the Community.

3. For the purpose of the application of paragraph 2 concerning products originating in Ceuta and Melilla, this Protocol shall apply mutatis mutandis subject to the special conditions set out in Article 37.

Article 37 Special conditions

1. Providing they have been transported directly in accordance with the provisions of Article 13, 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 6 of this Protocol, or that

(ii) those products are originating in Slovenia 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 7(1);

(2) products originating in Slovenia:

(a) products wholly obtained in Slovenia;

(b) products obtained in Slovenia, 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 6 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 7(1).

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

3. The exporter or his authorised representative shall enter 'Slovenia` and 'Ceuta and Melilla` in Box 2 of movement certificates EUR.1 or on invoice declarations. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in Box 4 of movement certificates EUR.1 or on invoice declarations.

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

TITLE VIII FINAL PROVISIONS

Article 38 Amendments to the Protocol

The Association Council may decide to amend the provisions of this Protocol.

(1) The text of this Protocol has been ameneded on several ocassions since it was signed. In order to provide suitable access to legislation, the text published in this Official Journal is a consolidated version as at the date of entry into force.

(2) The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

(3) Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

(4) The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

(5) Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list of Annex V to this Protocol.

ANNEX I

INTRODUCTORY NOTES TO THE LIST IN ANNEX II

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 6 of the Protocol.

Note 2:

2.1. The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonised 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 columns 3 or 4. Where, in some cases, the entry in the first column is preceded by an 'ex`, this signifies that the rules in columns 3 or 4 apply only to the part of that heading as described in column 2.

2.2. 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 rules in columns 3 or 4 apply to all products which, under the Harmonised System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

2.3. 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 rules in columns 3 or 4.

2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 3:

3.1. The provisions of Article 6 of the Protocol concerning products having acquired originating status which are used in the manufacture of other products apply regardless of whether this status has been acquired inside the factory where these products are used or in another factory in the Community or in Slovenia.

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 per cent of the ex-works price, is made from 'other alloy steel roughly shaped by forging` of heading No ex 7224.

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

3.2. 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 originating status. Thus if a rule provides 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.

3.3. Without prejudice to Note 3.2 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. 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.

Example:

The rule for fabrics of heading Nos 5208 to 5212 provides 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; it is possible to use one or the other or both.

3.5. Where 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. (See also Note 6.2 below in relation to textiles).

Example:

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

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 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.

3.6. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, 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 4:

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

4.2. 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 the other vegetable fibres of heading Nos 5301 to 5305.

4.3. 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.

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

Note 5:

5.1. Where for a given product in the list a reference is made to this note, the conditions set out in column 3 shall not be applied to any basic textile materials, used in the manufacture of this product, which, taken together, represent 10 per cent or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below).

5.2. However, the tolerance mentioned in Note 5.1 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,

- current conducting filaments,

- synthetic man-made staple fibres of polypropylene,

- synthetic man-made staple fibres of polyester,

- synthetic man-made staple fibres of polyamide,

- synthetic man-made staple fibres of polyacrylonitrile,

- synthetic man-made staple fibres of polyimide,

- synthetic man-made staple fibres of polytetrafluoroethylene,

- synthetic man-made staple fibres of polyphenylene sulphide,

- synthetic man-made staple fibres of polyvinyl chloride,

- other synthetic man-made staple fibres,

- artificial man-made staple fibres of viscose,

- other artificial man-made staple fibres,

- yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped,

- yarn made of polyurethane segmented with flexible segments of polyester whether or not gimped,

- products of heading No 5605 (metallised yarn) 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 a transparent or coloured adhesive between two layers of plastic film,

- other products of heading No 5605.

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 per cent of the yarn.

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 provided their total weight does not exceed 10 per cent of the weight of the fabric.

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.

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.

5.3. In the case of products incorporating 'yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped` this tolerance is 20 per cent in respect of this yarn.

5.4. In the case of products 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 layers of plastic film`, this tolerance is 30 per cent in respect of this strip.

Note 6:

6.1. 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 product 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 per cent of the ex-works price of the product.

6.2. Without prejudice to Note 6.3, materials which are not classified within Chapters 50 to 63 may be used freely in the manufacture of textile products, whether or not they contain textiles.

Example:

If a rule in the list provides that for a particular textile item, such as trousers, yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners even though slide-fasteners normally contain textiles.

6.3. Where a percentage rules applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 7:

7.1. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the 'specific processes` are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process (1);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolorisation and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation.

7.2. For the purposes of heading Nos 2710, 2711 and 2712, the 'specific processes` are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process (2);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolorisation and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(ij) isomerisation;

(k) in respect of heavy oils falling within heading No ex 2710 only, desulphurisation with hydrogen resulting in a reduction of at least 85 per cent of the sulphur content of the products processed (ASTM D 1266-59 T method);

(l) in respect of products falling within heading No 2710 only, deparaffining by a process other than filtering;

(m) in respect of heavy oils falling within heading No ex 2710 only, treatment with hydrogen at a pressure of more than 20 bar and a temperature of more than 250 °C with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction. The further treatment with hydrogen of lubricating oils of heading No ex 2710 (e.g. hydrofinishing or decolorisation) in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;

(n) in respect of fuel oils falling within heading No ex 2710 only, atmospheric distillation, on condition that less than 30 per cent of these products distil, by volume, including losses, at 300 °C by the ASTM D 86 method;

(o) in respect of heavy oils other than gas oils and fuel oils falling within heading No ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.

7.3. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations such as cleaning, decanting, desalting, water separation, filtering, colouring, marking, obtaining a sulphur content as a result of mixing products with different sulphur contents, any combination of these operations or like operations do not confer origin.

(1) See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

(2) See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

ANNEX II

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ANNEX III

MOVEMENT CERTIFICATE EUR.1 AND APPLICATION FOR A MOVEMENT CERTIFICATE EUR.1

Printing instructions

1. Each form 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.

2. The competent authorities of the Member States of the Community and of Slovenia 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 IV

INVOICE DECLARATION

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The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

English version

The exporter of the products covered by this document (customs authorisation No . . . (1)) declares that, except where otherwise clearly indicated, these products are of . . . preferential origin (2).

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera no . . . (1)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial . . . (2).

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. . . . (1)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i . . . (2).

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. . . . (1)), der Waren, auf die sich dieses Handelspapier bezieht, erklärt, daß diese Waren, soweit nicht anders angegeben, präferenzbegünstigte . . . Ursprungswaren sind (2).

Greek version

Ï åîáãùãÝáò ôùí ðñïúüíôùí ðïõ êáëýðôïíôáé áðü ôï ðáñüí Ýããñáöï [Üäåéá ôåëùíåßïõ õð' áñéè. . . . (1)] dhl´vnei óti, ektów eán dhl´vnetai saf´vw állvw, ta proïónta aztá eínai protimhsiak´hw katagvg´hw . . . (2).

French version

L'exportateur des produits couverts par le présent document (autorisation douanière no . . . (1)), déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle . . . (2).

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. . . . (1)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale . . . (2).

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. . . . (1)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële . . . oorsprong zijn (2).

Portuguese version

O exportador dos produtos cobertos pelo presente documento (autorização aduaneira no. . . . (1)), declara que, salvo indicacão expressa em contrário, estes produtos são de origem preferencial . . . (2).

(1) When the invoice declaration is made out by an approved exporter within the meaning of Article 22 of the Protocol, the authorisation number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.(2) Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol 'CM'.Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupan:o . . . (1)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja . . . alkuperätuotteita (2).

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. . . . (1)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande . . . ursprung (2).

Slovenian version

Izvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov Ost. . . . (1)) izjavlja, da, razen Oce ni druga Oce jasno navedeno, ima to blago preferencialno . . . (2) poreklo.

. (3)

(Place and date)

. (4)

(Signature of the exporter; in addition the name of the person signing the declaration has to be indicated in clear script)

(1) When the invoice declaration is made out by an approved exporter within the meaning of Article 22 of the Protocol, the authorisation number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.(2) Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol 'CM'.(3) These indications may be omitted if the information is contained on the document itself.(4) See Article 21(5) of the Protocol. In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.>END OF GRAPHIC>

ANNEX V

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JOINT DECLARATION concerning the Principality of Andorra

1. Products originating in the Principality of Andorra falling within Chapters 25 to 97 of the Harmonised System shall be accepted by Slovenia as originating in the Community within the meaning of Protocol 4 of this Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of defining the originating status of the abovementioned products.

JOINT DECLARATION concerning the Republic of San Marino

1. Products originating in the Republic of San Marino shall be accepted by Slovenia as originating in the Community within the meaning of Protocol 4 of this Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of defining the originating status of the abovementioned products.

PROTOCOL 5 on mutual assistance between administrative authorities in customs matters

Article 1 Definitions

For the purposes of this Protocol:

(a) 'customs legislation` shall mean provisions applicable in the European Community and Slovenia governing the import, export, transit of goods and their placing under any customs procedure, including measures of prohibition, restriction and control;

(b) 'customs duties` shall mean all duties, taxes, fees or 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) 'personal data` shall mean all information relating to an identified or identifiable individual.

Article 2 Scope

1. The Contracting parties shall assist each other, within their competences, 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 operations in breach of that legislation.

2. Assistance in customs matters, as provided for in this Protocol, shall apply 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 authorities, 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 which may enable it to ensure that customs legislation is correctly applied, including information regarding operations noted or planned which are or could be in breach of 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 inform it whether goods imported into the territory of one of the Contracting parties have been properly exported from the territory of the other party, specifying, where appropriate, the customs procedure applied to the goods.

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

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

(b) places where goods are stored in a way that gives grounds for suspecting that they are intended to supply operations contrary to customs legislation;

(c) movements of goods notified as possibly giving rise to breaches of customs legislation;

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

Article 4 Spontaneous assistance

The Contracting parties shall provide each other, in accordance with their laws, rules and other legal instruments, 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 constitute, or appear to them to constitute breaches of such legislation and which may be of interest to another Contracting party;

- new means or methods employed in realising such operations;

- goods known to be subject to breaches of customs legislation.

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

- 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) shall apply.

Article 6 Form and substance of requests for assistance

1. Requests pursuant to this 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 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 who are the target of the investigations;

(f) a summary of the relevant facts and of the enquiries already carried out, 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 can not 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 authorised 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 breaches 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 involved and within the conditions laid down by the latter, 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 computerised 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 the sovereignty of Slovenia or of a Member State of the Community which has been asked for assistance under this Protocol; or

(b) be likely to prejudice public policy, security or other essential interests; or

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

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

2. Where the applicant authority requests 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 for the requested authority to decide how to respond to such a request.

3. If assistance is withheld or denied, the decision and the reasons therefore 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 to like information under the relevant laws of the Contracting party which received it and the corresponding provisions applying to the Community authorities.

2. Personal data may only be transmitted if the level of personal protection afforded by the legislations of the Contracting parties is equivalent. The Contracting parties shall ensure at least a level of protection based on the principles laid down in the Annex to this Protocol.

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.

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. The competent authority which supplied that information shall be notified of such use forthwith.

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 authorised to appear, within the limitations of the authorisation 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 matters and by virtue of what title or qualification the official is to 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 public service employees.

Article 14 Implementation

1. The application of this Protocol shall be entrusted to the central Customs Administration of Slovenia on the one hand and the competent services of the Commission of the European Communities, and where appropriate, the customs authorities of the Member States of the European Community 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.

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 Protocol.

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 between one or more Member States of the European Community and Slovenia. 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.

ANNEX

BASIC PRINCIPLES OF DATA PROTECTION

1. Personal data undergoing automatic processing shall be:

(a) obtained and processed fairly and lawfully;

(b) stored for specific and legitimate purposes and not used in a way incompatible with those purposes;

(c) adequate, relevant and not excessive in relation to the purposes for which they are stored;

(d) accurate and, where necessary, kept up to date;

(e) preserved in a form which permits identification of the data subjects for no longer than is required for the purpose for which those data are stored.

2. Personal data revealing racial origin, political opinions or religious or other beliefs, as well as personal data concerning health or sexual life, may not be processed automatically unless domestic law provides appropriate safeguards. The same shall apply to personal data relating to criminal convictions.

3. Appropriate security measures shall be taken for the protection of personal data stored in automated data files against unauthorised destruction or accidental loss as well as against unauthorised access, alteration or dissemination.

4. Any person shall be enabled:

(a) to establish the existence of an automated personal data file, its main purposes, as well as the identity and habitual residence or principal place of business of the controller of the file;

(b) to obtain at reasonable intervals and without excessive delay or expense confirmation of whether personal data relating to him are stored in the automated data file as well as communication to him of such data in an intelligible form;

(c) to obtain, as the case may be, rectification or erasure of such data if they have been processed contrary to the provisions of domestic law giving effect to the basic principles set out in principles 1 and 2;

(d) to obtain remedy if a request for communication or, as the case may be, communication, rectification or erasure as referred to in paragraphs (b) and (c) of this principle is not complied with.

5.1. No exception to the provisions under principles 1, 2 and 4 shall be allowed except within the limits defined in this principle.

5.2. Derogation from the provisions under principles 1, 2 and 4 shall be allowed when such derogation is provided for by the law of the Contracting party, and constitutes a necessary measure in a democratic society in the interest of:

(a) protecting State security, public safety, the monetary interests of the State or the suppression of criminal offences;

(b) protecting the data subject or the rights and freedoms of others.

5.3. Restrictions on the exercise of the rights specified in principle 4, paragraphs (b), (c) and (d), may be provided by law with respect to automated personal data files used for statistics or for scientific research purposes where there is obviously no risk of an infringement of the privacy of the data subjects.

6. None of the provisions of this Annex shall be interpreted as limiting or otherwise affecting the possibility for a Contracting party to grant data subjects a wider measure of protection than that stipulated in this Annex.

PROTOCOL 6 on concessions with annual limits

The parties agree that if the Agreement enters into force after 1 January of a given year, any concessions granted within the limits of annual quantities shall be adjusted pro rata.

FINAL ACT

The plenipotentiaries of:

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Atomic Energy Community, and the Treaty on European Union,

hereinafter referred to as 'the Member States`, and of

the EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY,

hereinafter referred to as 'the Community`,

of the one part, and

the plenipotentiaries of the REPUBLIC OF SLOVENIA,

hereinafter referred to as 'Slovenia`,

of the other part,

meeting in Brussels this in the year for the signature of the Europe Agreement establishing an association between the European Communities and their Member States, acting within the framework of the European Union, of the one part, and the Republic of Slovenia of the other part, hereinafter referred to as 'the Agreement`, have adopted the following texts:

the Agreement, and the following Protocols:

>TABLE>

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

Joint Declaration on Article 11, Article 14 in conjunction with Annex XII, Article 2(3) of Protocol 1 in conjunction with Annexes II(a) and II(b) thereof, and Article 2(2) of Protocol 2

Joint Declaration concerning Article 26(3) of the Agreement

Joint Declaration concerning Article 35 of the Agreement

Joint Declaration concerning Article 38 of the Agreement

Joint Declaration concerning Article 39 of the Agreement

Joint Declaration concerning Article 40 of the Agreement

Joint Declaration concerning Article 47(d)(i) of the Agreement

Joint Declaration concerning transport issues, Article 55 of the Agreement

Joint Declaration concerning Article 55(1) of the Agreement

Joint Declaration concerning Article 55(3)(c) of the Agreement

Joint Declaration concerning Article 57 of the Agreement

Joint Declaration concerning Article 57(1) of the Agreement

Joint Declaration concerning Article 68 of the Agreement

Joint Declaration concerning Article 81 of the Agreement

Joint Declaration concerning Article 94 of the Agreement

Joint Declaration concerning Article 101 of the Agreement

Joint Declaration concerning Article 115 of the Agreement

Joint Declaration concerning Article 123 of the Agreement

Joint Declaration concerning Protocol 4

Joint Declaration on a transitional period concerning the acceptance of documents relating to the proof of origin

Joint Declaration on the Wine Agreement

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

Unilateral declaration by the French Government

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

Unilateral declaration by Slovenia

Hecho en Luxemburgo, el diez de junio de mil novecientos noventa y seis.

Udfærdiget i Luxembourg den tiende juni nitten hundrede og seksoghalvfems.

Geschehen zu Luxemburg am zehnten Juni neunzehnhundertsechsundneunzig.

¸ãéíå óôï Ëïõîåìâïýñãï, óôéò äÝêá Éïõíßïõ ÷ßëéá åííéáêüóéá åíåíÞíôá Ýîé.

Done at Luxembourg on the tenth day of June in the year one thousand nine hundred and ninety-six.

Fait à Luxembourg, le dix juin mil neuf cent quatre-vingt-seize.

Fatto a Lussemburgo, addì dieci giugno millenovecentonovantasei.

Gedaan te Luxemburg, de tiende juni negentienhonderd zesennegentig.

Feito no Luxemburgo, em dez de Junho de mil novecentos e noventa e seis.

Tehty Luxemburgissa kymmenentenä päivänä kesäkuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkuusi.

Som skedde i Luxemburg den tionde juni nittonhundranittiosex.

V Luksemburgu, desetega junija tiso Ocdevetsto Osestindevetdeset.

Pour le Royaume de Belgique

Voor het Koninkrijk België

Für das Königreich Belgien

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Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

For Kongeriget Danmark

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Für die Bundesrepublik Deutschland

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Ãéá ôçí ÅëëçíéêÞ ÄçìïêñáôéÜ

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Por el Reino de España

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Pour la République française

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Thar ceann na hÉireann

For Ireland

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Per la Repubblica italiana

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Pour le Grand-Duché de Luxembourg

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Voor het Koninkrijk der Nederlanden

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Für die Republik Österreich

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Pela República Portuguesa

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Suomen tasavallan puolesta

För Republiken Finland

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För Konungariket Sverige

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For the United Kingdom of Great Britain and Northern Ireland

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Por las Comunidades Europeas

For De Europæiske Fællesskaber

Für die Europäischen Gemeinschaften

Ãéá ôéò ÅõñùðáúêÝò Êïéíüôçôåò

For the European Communities

Pour les Communautés européennes

Per le Comunità europee

Voor de Europese Gemeenschappen

Pelas Comunidades Europeias

Euroopan yhteisöjen puolesta

För Europeiska gemenskaperna

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Za Republiko Slovenijo

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Joint Declaration on Article 11, Article 14 in conjunction with Annex XII, Article 2(3) of Protocol 1 in conjunction with Annexes II(a) and II(b) thereof and Article 2(2) of Protocol 2

The Agreement was drafted in the expectation that certain provisions, in particular those relating to goods, would be brought into force with effect from 1 January 1996 by means of an interim agreement.

The parties note that the entry into force of those provisions is no longer possible on 1 January 1996.

The parties agree that the timetables for tariff and tax reductions laid down in Article 11, Article 14 in conjunction with Annex XII, Article 2(3) of Protocol 1 in conjunction with Annexes II(a) and II(b) thereof and Article 2(2) of Protocol 2 should be respected as originally foreseen but should not be interpreted as requiring any reduction of tariffs or taxes to take effect before the date of entry into force of the interim agreement.

Joint Declaration concerning Article 26(3)

The conditions for the application of Article 26(3) of the Agreement, and the corresponding provisions of the other Europe Agreements will be discussed between the Community and the Countries of Central and Eastern Europe which have signed Europe Agreements. Slovenia will participate in these discussions.

Once these conditions have been agreed, they will be incorporated into the Agreement in an appropriate manner.

Joint Declaration concerning Article 35

Declaration of intent by the Contracting parties on the trade arrangements between the States that emerged from the former Socialist Federal Republic of Yugoslavia:

1. The European Community and Slovenia consider it essential for economic and trade cooperation between the States that emerged from the former Socialist Federal Republic of Yugoslavia to be re-established as quickly as possible, as soon as political and economic circumstances permit.

2. The Community is prepared to grant cumulation of origin to the States that emerged from the former Socialist Federal Republic of Yugoslavia which have restored normal economic and trade cooperation as soon as the administrative cooperation needed for cumulation to work properly has been established.

3. With this in mind, Slovenia declares its readiness to enter into negotiations as soon as possible in order to establish cooperation with other States that emerged from the former Socialist Federal Republic of Yugoslavia.

Joint Declaration concerning Article 38

It is understood that the notion 'children` is defined in accordance with national legislation of the host country concerned.

Joint Declaration concerning Article 39

It is understood that the notion 'members of their family` is defined in accordance with national legislation of the host country concerned.

Joint Declaration concerning Article 40

Subject to the provisions of Title IV of the Agreement, the Member States of the Community and Slovenia, acting on the basis of the exchange of letters on cooperation in the field of labour, annexed to the Cooperation Agreement of 1993, express their commitment to decide, in the framework of the Association Council, on the modalities of implementation of the principles referred to in that exchange of letters.

Joint Declaration concerning Article 47(d)(i)

Without prejudice to Article 47, the parties agree that no provision under the Agreement can be interpreted as denying the right of the parties to control and regulate in order to ensure that natural persons benefiting from the right of establishment effectively pursue an activity as self-employed persons.

Joint Declaration on transport issues (Article 55)

I. Regarding the EC/Slovenia Transport Agreement:

Taking into account the concerns raised by the Slovenian delegation regarding the implications of the enlargement of the Community by the accession of Austria, Finland and Sweden, the parties agree to seek the earliest possible implementation of Articles 13 and 14 of the EC/Slovenia Transport Agreement, through the negotiation of an additional agreement regarding bilateral market access for road freight services and road taxes and charges. Negotiations on these issues will be opened if possible before 1 January 1996.

II. Regarding cooperation on port development:

The parties confirm their desire to encourage transborder cooperation through the development of the ports of Koper and Trieste as a joint cooperative venture between the authorities and entities responsible for these ports. In this context, attention should also be given to common customs procedures for traffic transiting through all these ports.

Joint Declaration concerning Article 55(1)

The parties state that an Additional Protocol to the Transport Agreement will be negotiated as soon as possible with a view to adapting Slovenian transit traffic through Austrian territory to the conditions laid down in the Act of Accession of Austria to the European Union.

Joint Declaration concerning Article 55(3)(c)

The parties confirm their understanding that Article 55(3)(c) requires inter alia that each party shall grant no less favourable treatment than that accorded to its own ships for the ships operated by nationals or companies of, or flying the flag of another party, with regard to access to ports, the use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

Joint Declaration concerning Article 57

The sole fact of requiring a visa for natural persons of certain Member States and not for those of other Member States by Slovenia or of requiring a visa for natural persons of Slovenia by certain Member States and not by others shall not be regarded as nullifying or impairing benefits under a specific commitment.

Joint Declaration concerning Article 57(1)

Without prejudice to Article 53, the parties agreed that Article 50 is the only provision in Chapters II, III and IV of Title IV that shall be interpreted as giving the right to:

- Community subsidiaries or branches of Slovenian companies to employ or have employed in the territory of the Community nationals of Slovenia,

- Slovenian subsidiaries or branches of Community companies to employ or have employed in the territory of Slovenia Community nationals.

Joint Declaration concerning Article 68

The parties agree that for the purpose of the Agreement, intellectual, industrial and commercial property includes in particular copyright, including the copyright in computer programmes, and neighbouring rights, the rights relating to patents, industrial designs, geographical indications, including appellations of origin, trademarks and service marks, topographies of integrated circuits as well as protection against unfair competition as referred to in Article 10 bis of the Paris Convention for the Protection of Industrial Property and protection of undisclosed information on know-how.

Joint Declaration concerning Article 81

The Community and Slovenia agree between themselves to establish the methods and means necessary for the establishment of an efficient system for the exchange of information in the case of a radiological emergency.

Joint Declaration concerning Article 94

In accordance with international commitments the parties will take the necessary steps to implement, before 1 July 1998, the recommendation adopted by the Customs Cooperation Council on 16 June 1960.

Joint Declaration concerning Article 101

The European Union and Slovenia agree to examine jointly the possibility of continuing Community support, after entry into force of the Agreement, for the financing of transport infrastructures of mutual interest in Slovenia.

They agree to carry out this examination in January 1996 in accordance with the Contracting Parties Joint Declaration No 2 in the minutes of the negotiations for the 1993 EEC-Slovenia Cooperation Agreement.

Joint Declaration concerning Article 115

The parties agree that the Association Council, in accordance with Article 115 of the Agreement, will examine the creation of a consultative mechanism composed of members of the Economic and Social Committee of the European Union and the correspondent partners of Slovenia.

Joint Declaration concerning Article 123

(a) For the purposes of the interpretation and practical application of the Agreement, the parties agree that the cases of special urgency referred to in Article 123 of the Agreement mean cases of material breach of the Agreement by one of the two parties. A material breach of the Agreement consists in:

- repudiation of the Agreement not sanctioned by the general rules of international law;

- violation of the essential elements of the Agreement set out in Article 2.

(b) The parties agree that the 'appropriate measures` referred to in Article 123 are measures taken in accordance with international law. If a party takes a measure in a case of special urgency pursuant to Article 123, the other party may avail itself of the dispute settlement procedure.

Joint Declaration concerning Protocol 4

Slovenia fully supports the European Union's strategy to unify rules of origin in preferential trade between the Community, the Central and East European countries and the EFTA countries, set out in the conclusions of the European Council's Summit at Essen in December 1994.

The Community and Slovenia are of the opinion that the successful implementation of a system of diagonal cumulation between the Community and all associated countries in Central and Eastern Europe would be dependent on the associated countries all agreeing on one system and on concluding an agreement between themselves. The parties will seek the addition of Slovenia to the system once these basic conditions have been fulfilled.

Joint Declaration on a transitional period concerning the acceptance of documents relating to the proof of origin

1. The competent customs authorities of the Community and of Slovenia shall accept as valid proof of origin within the meaning of Protocol 4:

(a) movement certificates EUR.1, endorsed beforehand with the stamp of the competent customs office of the exporting state, issued within the context of the Cooperation Agreement between the European Economic Community and the Republic of Slovenia for up to four months after the entry into force of the Agreement;

(b) long-term certificates, endorsed beforehand with the stamp of the competent customs office of the exporting state, issued within the context of the Cooperation Agreement between the European Economic Community and the Republic of Slovenia until 31 December 1995.

2. Requests for subsequent verification of documents referred to above shall be accepted by the competent customs authorities of the Community and of Slovenia for a period of two years after the issuing and making out of the proof of origin concerned. These verifications shall be carried out in accordance with Title V of Protocol 4 to the Agreement.

Joint Declaration on the Wine Agreement

The parties agree that a separate reciprocal Wine Agreement will be negotiated, and concluded in time so as to enter into force at the same time as the Agreement (Interim Agreement). In these negotiations, the parties will take into account the preferential conditions resulting from the Cooperation Agreement.

Declaration by the French Government

France notes that the Agreement with the Republic of Slovenia does not apply to the overseas countries and territories associated with the European Community pursuant to the Treaty establishing the European Community.

Declaration by Slovenia

Slovenia expresses its intention to utilise all appropriate instruments to foster the development of the port of Koper.