Note:  This document has been re-typed and therefore there are likely to be some typing errors.  IT SHOULD THEREFORE NOT BE CONSIDERED AN OFFICIAL DOCUMENT.  Please refer to the Official Journal of the European Union whenever the text is needed for legal purposes.
 

CONTENTS
 

CONVENTION

               6. Title l: Trade cooperation

               8. Title Il: Export earnings from commodities

              11. Title lll: Industrial cooperation

              13. Title IV: Financial and technical cooperation

              17. Title V: Provisions relating to establishment, services, payments and capital movements

             18. Title Vl: Institutions

             20. Title Vll: General and final provisions

PROTOCOLS

             21. Protocol no. 1 concerning the definition of the concept of "originating products" and methods of administrative cooperation

            66. Protocol no. 2 on the application of financial and technical cooperation

            73. Protocol no. 3 on ACP sugar

            74. Protocol no. 4 on the operating expenditure of the Institutions

            75. Protocol no. 5 on privileges and immunities

           76. Protocol no. 6 on bananas

           77. Protocol no. 7 on rum

           77. Annexe: Joint declaration on fishing activities

FINAL ACT (page77)

AGREEMENT on products within the province of the European Coal and Steel  Community(page 81)

His Majesty the King of the Belgians,
Her Majesty the Queen of Denmark,
The President of the Federal Republic of Germany,
The President of the French Republic,
The President of Ireland,
The President of the Italian Republic,
His Royal Highness the Grand Duke of Luxembourg,
Her Majesty the Queen of the Netherlands,
Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland,

Contracting Parties to the Treaty establishing the European Economic Community signed at Rome on 25 March 1975 (hereinafter called the "Treaty"), whose States are hereinafter called "Member States"; and the Council of the European Communities, of the one part, and

The Head of State of the Bahamas,
The Head of State of Barbados,
The President of the Republic of Botswana,
The President of the Republic of Burundi,
The President of the United Republic of Cameroon,
The President of the Central African Republic,
The President of the People's Republic of the Congo,
The President of the Republic of the Ivory Coast,
The President of the Republic of Dahomey,
The President of the Provisional Administrative Military Council,   President of the Government of Ethiopia,
Her Majesty the Queen of Fiji,
The President of the Gabonese Republic,
The President of the Republic of the Gambia,
The President of the National Redemption Council of the Republic  of Ghana,
The Head of State of Grenada,
The President of the Republic of Guinea,
The President of the Council of State of Guinea Bissau,
The President of the Republic of Equatorial Guinea,
The President of the Cooperative Republic of Guyana,
The President of the Republic of Upper Volta,
The Head of State of Jamaica,
The President of the Republic of Kenya,
The King of the Kingdom of Lesotho,
The President of the Republic of Liberia,
The President of the Republic of Malawi,
The Head of State and of Government of the Malagasy Republic,
The President of the Military Council of National Liberation of   Mali, Head of State, President of the Government,
Her Majesty the Queen of Mauritius,
The President of the Islamic Republic of Mauritania,
The President of the Republic of Niger,
The Head of the Federal Military Government of Nigeria,
The President of the Republic of Rwanda,
The President of the Republic of Senegal,
The President of the Republic of Sierra Leone,
The President of the Somali Democratic Republic, President of the Supreme Revolutionary Council,
The President of the Democratic Republic of the Sudan,
The King of the Kingdom of Swaziland,
The President of the United Republic of Tanzania,
The President of the Republic of Chad,
The President of the Republic of Togo,
The Head of State of Tonga,
The Head of State of Trinidad and Tobago,
The President of the Republic of Uganda,
The Head of State of Western Samoa,
The President of the Republic of Zaire,
The President of the Republic of Zambia,
whose States are hereinafter called the "ACP States", of the other part,  

HAVING REGARD to the Treaty establishing the European Economic Community;
ANXIOUS to establish, on the basis of complete equality between partners, close and continuing co-operation, in a spirit of international solidarity;
RESOLVED to intensify their efforts together for the economic development and social progress of the ACP States;
WISHING to demonstrate their common desire to maintain and develop the friendly relations existing between their countries, according to the principles of the United Nations Charter;
RESOLVED to promote, having regard to their respective levels of development, trade co-operation between the ACP States and the Community and to provide a sound basis therefore in conformity with their international obligations;
CONSCIOUS of the importance of developing co-operation and trade among the ACP States;
RESOLVED to establish a new model for relations between developed and developing States, compatible with the aspirations of the international community towards a more just and more balanced economic order;
DESIROUS of safeguarding the interests of the ACP States whose economies depend to a considerable extent on the exportation of commodities;
ANXIOUS to promote the industrial development of the ACP States by wider co-operation between these States and the Member States of the Community;
HAVE DECIDED TO CONCLUDE THIS CONVENTION, and to this end have designated as their Plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS: Renaat VAN ELSLANDE, Minister for Foreign Affairs;
HER MAJESTY THE QUEEN OF DENMARK: Jens CHRISTENSEN, State Secretary for Foreign Affairs, Ambassador;
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GER MANY: Hans-Jurgen WISCHNEWSKI, Minister of State for Foreign Affairs;
THE PRESIDENT OF THE FRENCH REPUBLIC: Pierre ABELIN, Minister for Co-operation;
THE PRESIDENT OF IRELAND:Garret FITZGERALD, T.D., Minister for Foreign Affairs;
THE PRESIDENT OF THE ITALIAN REPUBLIC: Francesco CATTANEI, State Secretary for Foreign Affairs;
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG: Jean DONDELINGER, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the European Communities;
HER MAJESTY THE QUEEN OF THE NETHERLANDS: Prof. Mr L.J. BRINKHORST, State Secretary for Foreign Affairs;
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: The Rt. Hon. Judith HART, M.P., Minister for Overseas Development;
THE COUNCIL OF THE EUROPEAN COMMUNITIES:Garret FITZGERALD,
President in office of the Council of the European Communities;Francois-Xavier ORTOLI,
President of the Commission of the European Communities;Claude CHEYSSON,
THE HEAD OF STATE OF THE BAHAMAS: A.R. BRAYNEN, High Commissioner for the Bahamas;
THE HEAD OF STATE OF BARBADOS: Stanley Leon TAYLOR, Permanent Representative of the Ministry of Trade, Industry and Commerce;
THE PRESIDENT OF THE REPUBLIC OF BOTSWANA: The Hon. Dr. GAOSITWE KEAGAKWA TIBE CHIEPE, Minister of Commerce and Industry;
THE PRESIDENT OF THE REPUBLIC OF BURUNDI: Gilles BIMAZUBUTE, Minister for Foreign Affairs and Co-operation;
THE PRESIDENT OF THE UNITED REPUBLIC OF CAMEROON: Maikano ABDOULAYE, Minister for Planning and Regional Development;
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC: Jean Paul MOKODOPO Minister for Planning;
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF THE CONGO: Commandant Alfred RAOUL, Ambassador Extraordinary and Plenipotentiary, Representative of the Congo to the European Economic Community;
THE PRESIDENT OF THE REPUBLIC OF THE IVORY COAST: Henri KONAN BEDIE, Minister of Economic Affairs and Finance;
THE PRESIDENT OF THE REPUBLIC OF DAHOMEY:Captain Andre ATCHADE, Minister for Industry, Trade and Tourism;
THE PRESIDENT OF THE PROVISIONAL ADMINISTRATIVE MILITARY COUNCIL, PRESIDENT OF THE GOVERNMENT OF ETHIOPIA: Ato Gebre Kidan ALULA, Trade Representative of Ethiopia to the European Economic Community;
HER MAJESTY THE QUEEN OF FIJI: The Rt. Hon. Ratu K.T. MARA, K.B.]E., Prime Minister and Minister for Foreign Affairs;
THE PRESIDENT OF THE GABONESE REPUBLIC: Emile KASSA MAPSI, Minister of State;
THE PRESIDENT OF THE REPUBLIC OF THE GAMBIA: Alhaji the Hon. IBRAHIM GARBA JAHUMPA, Minister of Finance and Trade;
THE PRESIDENT OF THE NATIONAL REDEMPTION COUNCIL OF THE REPUBLIC OF GHANA: Lieutenant Colonel FELLI, Minister Commissioner for Economic Planning;
THE HEAD OF STATE OF GRENADA:Senator Derek KNIGHT, Minister without Portfolio;
THE PRESIDENT OF THE REPUBLIC OF GUINEA:Seydou KEITA, Ambassador;
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA BISSAU: Dr. Vasco CABRAL, State Commissioner for Economic and Financial Affairs;
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA: Agelmasie NTUMU, State Secretary;
THE PRESIDENT OF THE COOPERATIVE REPUBLIC OF GUYANA:The Hon. S.S. RAMPHAL, S.C., M.P.,Minister of Foreign Affairs and Industry;
THE PRESIDENT OF THE REPUBLIC OF UPPER VOLTA: Leonard KALMOGO, State Secretary for Planning;
THE HEAD OF STATE OF JAMAICA: Percival J. PATTERSON, Minister of Industry, Tourism and Foreign Trade;
THE PRESIDENT OF THE REPUBLIC OF KENYA: Dr. J.G. KIANO, Minister of Trade and Industry;
THE KING OF THE KINGDOM OF LESOTHO: E.R. SEKHONYANA, Minister of Finance;
THE PRESIDENT OF THE REPUBLIC OF LIBERIA: The Hon. D. Franklin NEAL, Minister of Planning and Economic Affairs;
THE PRESIDENT OF THE REPUBLIC OF MALAWI: The Hon. D.T. MATENJE, Minister of Trade, Industry and Tourism, Minister of Finance;
THE HEAD OF STATE AND OF GOVERNMENT OF THE MALAGASY REPUBLIC: Jules RAZAFIMBAHINY, Ambassador Extraordinary and Plenipotentiary, Representative to the European Economic Community;
THE PRESIDENT OF THE MILITARY COUNCIL OF NATIONAL LIBERATION OF MALI, HEAD OF STATE, PRESIDENT OF THE GOVERNMENT: Lieutenant Colonel Charles SAMBA CISSOKHO, Minister for Foreign Affairs and Co-operation;
HER MAJESTY THE QUEEN OF MAURITIUS: Sir Seewoosagur RAMGOOLAM, Prime Minister;
THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA:Sidi Ould CHEIKH ABDALLAH, Minister for Planning and Industrial Development;
THE PRESIDENT OF THE REPUBLIC OF NIGER: Captain Moumouni DJERMAKOYE ADAMOU, Minister for Foreign Affairs and Co-operation;
THE HEAD OF THE FEDERAL MILITARY GOVERNMENT OF NIGERIA: Gabriel CHUKWUEMEKA AKWAEZE, Federal Commissioner for Trade;
THE PRESIDENT OF THE REPUBLIC OF RWANDA: NDUHUNGIREHE, Minister for Finance and Economic Affairs;
THE PRESIDENT OF THE REPUBLIC OF SENEGAL: Babacar BA, Minister for Finance and Economic Affairs;
THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE: The Hon. Francis M. MINAH, Minister for Trade and Industry;
THE PRESIDENT OF THE SOMALI DEMOCRATIC REPUBLIC, PRESIDENT OF THE SUPREME REVOLUTIONARY COUNCIL: Jaale Mohamed WARSAME ALI, Advisor to the Economic Committee of the Supreme Revolutionary Council;
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF THE SUDAN: Sharif el KHATIM, Deputy Minister of Finance and National Economy;
THE KING OF THE KINGDOM OF SWAZILAND: The Hon. Simon SISHAYI NXUMALO, Minister of Industry and Mines;
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA: Daniel Narcis Mtonga MLOKA, Ambassador to the Federal Republic of Germany;
THE PRESIDENT OF THE REPUBLIC OF CHAD: Ngarhodjina Adoum MOUNDARI, State Secretary for Modern Economy;
THE PRESIDENT OF THE REPUBLIC OF TOGO: Benissan TETE-TEVI, Minister for Trade and Industry;
THE HEAD OF STATE OF TONGA: His Royal Highness Prince TUPOUTOA;
THE HEAD OF STATE OF TRINIDAD AND TOBAGO: The Hon. Dr. Cuthbert JOSEPH, Minister in the Ministry of External and West Indian Affairs;
THE PRESIDENT OF THE REPUBLIC OF UGANDA: The Hon. Edward ATHIYO, Minister of Trade;
THE HEAD OF STATE OF WESTERN SAMOA: The Hon. FALESA P.S. SAILI, Minister of Finance;
THE PRESIDENT OF THE REPUBLIC OF ZAIRE: Kanyinda TSCHIMPUMPU, State Commissioner for Trade;
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA:

WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
 
 
  TITLE 1
 

  Trade co-operation
 
Article 1

In the field of trade co-operation, the object of this Convention is to promote trade between the Contracting Parties, taking account of their respective levels of development, and, in particular, of the need to secure additional benefits for the trade of ACP States, in order to accelerate the rate of growth of their trade and improve the conditions of access of their products to the market of the European Economic Community, (hereinafter called the "Community" so as to ensure a better balance in the trade of the Contracting Parties. To this end the Contracting Parties shall apply Chapters 1 and 2 of this Title.

CHAPTER 1

Trade arrangements

Article 2

1. Products originating in the ACP States shall be imported into the Community free of customs duties and charges having equivalent effect, but the treatment applied to these products may not be more favourable than that applied by the Member States among themselves.

For the purpose of the first subparagraph the transitional provisions in force relating to the residual customs duties and charges having equivalent effect resulting from the application of Articles 32 and 36 of the Act concerning the Conditions of Accession and the Adjustments to the Treaties shall have no application.

2. (a) Products originating in the ACP States:

--listed in Annex II to the Treaty when they come under a common organization of the market within the meaning of Article 40 of the Treaty, or

--subject, on importation into the Community, to specific rules introduced as a result of the implementation of the common agricultural policy; shall be imported into the Community notwithstanding the general arrangements applied in respect of third countries, in accordance with the following provisions:

(i) those products shall be imported free of customs duties for which Community provisions in force at the time of importation do not provide, apart from customs duties, for the application of any other measure relating to their importation;

(ii) for products other than those referred to under (i), the Community shall take the necessary measures to ensure, as a general rule, more favourable treatment than the general treatment applicable to the same products originating in third countries to which the most-favoured-nation clause applies.

(b) These arrangements shall enter into force at the same time as this Convention and shall remain applicable for its duration.

If, however, during the application of this Convention, the Community,

--subjects one or more products to common organization of the market or to specific rules introduced as a result of the implementation of the common agricultural policy, it reserves the right to ad' apt the import treatment for these products originating in the ACP States, following consultations within the Council of Ministers. In such cases, paragraph 2 (a) shall be applicable;

--modifies the common organization of the market in a particular product or the specific rules introduced as a result of the implementation of the common agricultural policy, it reserves the right to modify the arrangements laid down for products originating in the ACP States, following consultations within the Council of Ministers. In such cases, the Community undertakes to ensure that products originating in the ACP States continue to enjoy an advantage comparable to that previously enjoyed in relation to products originating in third countries benefiting from the most-favoured-nation clause.

Article 3

1. The Community shall not apply to imports of products originating in the ACP States any quantitative restrictions or measures having equivalent effect other than those which the Member States apply among themselves.

2. Paragraph 1, however, shall not prejudice the import treatment applied to the products referred to in the first indent of Article 2 (2) (a). The Community shall inform the ACP States when residual quantitative restrictions are eliminated in respect of any of these products.

3. This Article shall not prejudice the treatment that the Community applies to certain products in implementation of world commodity agreements to which the Communityand the ACP States concerned are signatory.
Article 4

Nothing in this Convention shall 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 and plants; the protection of national treasures possessing artistic, historic or archaeological value or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade.

Article 5

Where new measures or measures stipulated in programmes adopted by the Community for the approximation of laws and regulations in order to facilitate the movement of goods are likely to affect the interests of one or more ACP States the Community shall, prior to adopting such measures, inform the ACP States thereof through the Council of Ministers. In order to enable the Community to take into consideration the interests of the ACP States concerned, consultations shall be held upon the request of the latter with a view to reaching a satisfactory solution.

Article 6

Where existing rules or regulations of the Community adopted in order to facilitate the movement of goods or where the interpretaion, application or administration thereof affect the interests of one - or more ACP States, consultations shall be held at the request of the latter with a view to reaching a satisfactory solution. With a view to finding a satisfactory solution, the ACP States may also bring up within the Council of Ministers any other problems relating to the movement of goods which might result from measures taken or to be taken by the Member States. The competent institutions of the Community shall to the greatest possible extent inform the Council of Ministers of such measures.

Article 7

1. In view of their present development needs, the ACP States shall not be required, for the duration of this Convention, to assume, in respect of imports of products originating in the Community, obligations corresponding to the commitments entered into by the Community in respect of imports of the products originating in the ACP States, under this Chapter.
(a) In their trade with the Community, the ACP States shall not Discriminate among the Member States, and shall grant to the Community treatment no less favourable than the most-favoured-nation treatment.
(b) The most-favoured-nation treatment referred to in subparagraph (a) shall not apply in respect of trade or economic relations between ACP States or between one or more ACP States and other developing countries.

Article 8

Each Contracting Party shall communicate its customs tariff to the Council of Ministers within a period of three months following the entry into force of this Convention it shall also communicate any subsequent amendments to that tariff as and when they occur.

Article 9

1. The concept of "originating products" for the purposes of implementing this Chapter, and the methods of administrative co-operation relating thereto, are laid down in Protocol No 1.

2. The Council of Ministers may adopt any amendment to Protocol No 1.

3. Where the concept of "originating products" has not yet been defined for a given product in implementation of paragraphs I or 2, each Contracting Party shall continue to apply its own rules.

Article 10

1. If, as a result of applying the provisions of this Chapter, serious disturbances occur in a sector of the economy of the Community or of one or more of its Member States, or jeopardise their external financial stability, or if difficulties arise which may result in a deterioration in a sector of the economy of a region of the Community, the latter may take, or may authorize the Member State concerned to take, the necessary safeguard measures. These measures and the methods of applying them shall be notified immediately to the Council of Ministers.

2. For the purpose of implementing paragraph 1, priority shall be given to such measures as would least disturb the trade relations between the Contracting Parties and the attainment of the objectives of the Convention. These measures shall not exceed the limits of what is strictly necessary to remedy the difficulties that have arisen.

Article 11

In order to ensure effective implementation of the provisions of this Convention in the field of trade co-operation, the Contracting Parties agree to inform and consult each other. Consultations shall take place, at the request of the Community or of the ACP States, in accordance with the conditions provided for in the rules of procedure in Article 74, particularly in the following cases:

1. Where Contracting Parties envisage taking any trade measures affecting the interest of one or more Contracting Parties under this Convention, they shall inform the Council of Ministers thereof. Consultations shall take place, where the Contracting Parties concerned so request, in order to take into account their respective interests.

2. Where the Community envisages concluding a preferential trade agreement it shall inform the ACP States thereof. Consultations shall take place, where the ACP States so request, in order to safeguard their interests.

3. Where the Community or the Member States take safeguard measures in accordance with Article 10, consultations on these measures may take place within the Council of Ministers, where the Contracting Parties concerned so request, notably with a view to ensuring compliance with Article 10 (2).

4. If, during the application of this Convention, the ACP States consider that agricultural products covered by Article 2 (2) (a), other than those subject to special treatment, call for special treatment, consultations may take place within the Council of Ministers.

CHAPTER 2

Trade promotion

Article 12

With a view to attaining the objectives they have set themselves as regards trade and industrial co-operation the Contracting Parties shall carry out trade promotion activities which will be aimed at helping the ACP States to derive maximum benefit from Title I, Chapter I and Title III and to participate under the most favourable conditions in the Community, regional and international markets.

Article 13

The trade promotion activities provided for in Article 12 shall include:

(a) improving the structure and working methods of organizations, departments or firms contributing to the development of the foreign trade of ACP States, or setting up such organizations, departments or firms;

(b) basic training or advanced vocational training of staff in trade promotion;

(c) participation by the ACP States in fairs, exhibitions, specialized international shows kind the organization of trade events;

(d) improving co-operation between economic operators in the Member States and the ACP States and establishing links to promote such co-operation;

(e) carrying out and making use of market research and marketing studies;

(f) producing and distributing trade information in various forms within the Community and the ACP States with a view to developing trade.

Article 14

Applications for financing of trade promotion activities shall be presented to the Community by the ACP State or ACP States concerned under the conditions laid down in Title IV.

Article 15

The Community shall participate, under the conditions laid down in Title IV and in Protocol No 2, in financing trade promotion activities for promoting the development of exports of ACP States.

TITLE II

Export earnings from commodities

CHAPTER 1

Stabilization of export earnings

Article 16

With the aim of remedying the harmful effects of the instability of export earnings and of thereby enabling the ACP States to achieve the stability, profitability and sustained growth of their economies, the Community shall implement a system for guaranteeing the stabilisation of earnings from exports by the ACP States to the Community of certain products on which their economies are dependent and which are affected by fluctuations in price and/or quantity.

Article 17

1. Export earnings to which the stabilisation system applies shall be those accruing from the exportation by the ACP States to the Community of the products on the following list, drawn up taking account of factors such as employment, deterioration of the terms of trade between the Community and the ACP State concerned, the level of development of the State concerned and the particular dif ficulties of the least developed, landlocked or island ACP states listed in Article 24:

a. Groundout products (act) groundnuts, shelled or not (ate) groundnut oil (ac) groundnut oilcake

b. Cocoa products (ba) cocoa beans (bb) cocoa paste (be) cocoa butter

c. Coffee products (ca) raw or roasted coffee (cb) extracts, essences or concentrates of coffee

d. Cotton products (da) cotton, not carded or combed (db) cotton [inters

e. Coconut products (ea) coconuts (eb) copra(ec) coconut oil (ed) coconut oilcake

f. Palm, palm nut and kernel products (fa) palm oil (fb) palm nut and kernel oil (fc) palm nut and kernel oilcake (fd) palm nuts and kernels -

g. Raw hides, skins and leather (ga) raw hides and skins (gb) bovine cattle leather (gc) sheep and lamb skin leather (gd) goat and kid skin leather

h. Wood products (ha) wood in the rough (hb) wood roughly squared or half-squared, but not further manufactured (he) wood sawn lengthwise, but not further prepared

i. Fresh bananas

k. Tea

l. Raw sisal

m. lron ore Iron ores and concentrates and roasted iron pyrites.

The statistics used for implementation of the system shall be those obtained by cross-checking the statistics of the ACP States and of the Community, account being taken of the fob values. The system shall be implemented in respect of the products listed above where they are:

a) released for home use in the Community;

(b) brought under the inward processing arrangements there in order to be processed.

2. The system shall apply to an ACP State's export earnings from the products listed above if, during the year preceding the year of application, earnings from the export of the product or products to all destinations represented at least 7.5% of its total earnings from merchandise exports: for sisal, however, the percentage shall be 5 % . For the least developed, landlocked or island ACP States listed in Article 24 the percentage shall be 2.5%.

3. Nonetheless if, not sooner than 12 months following the entry into force of this Convention, one or more products not contained in this list, but upon which the economies of one or more ACP States depend to a considerable extent, are affected by sharp fluctuations, the Council of Ministers may decide whether the product or products should be included in the list, without prejudice to Article 18 (1).

4. For certain special cases the system shall apply to exports of the products in question irrespective of destination.

The ACP States concerned shall certify that the products to which the stabilization system applies have originated in their territory.

1. For the purposes specified in Article 16 and for the duration of this Convention, the Community shall allocate to the stabilization system a total amount of 375 million units of account to cover all its commitments under the said system. This amount shall be managed by the Commission of the European Communities hereinafter called the "Commission".
2. This total amount shall be divided into five equal annual instalments. Every year except the last, the Council of Ministers may authorize, where required, the use in advance of a maximum of 20% of the following year's instalment.
3. Whatever balance remains at the end of each year of the first four years of the application of this Convention shall be carried forward automatically to the following year.
4. On the basis of a report submitted to it by the Commission, the Council of Ministers may reduce the amount of the transfers to be made under the stabilization system.
5. Before the expiry of this Convention, the Council of Ministers shall decide on the use to which any balance remaining from the total amount referred to in paragraph 1 is to be put and also on the terms to be laid down for the further use of amounts still to be paid by the ACP States, under Article 21, after the expiry of this Convention.

Article 19

1. In order to implement the stabilization system a reference level shall be calculated for each ACP State and for each product. This reference level shall correspond to the component of export earnings during the four years preceding each year of application.

2. An ACP State shall be entitled to request a financial transfer if, on the basis of the results of a calendar year, its actual earnings, as defined in Article 17, from each of the products considered individually, are at least 7.5% below the reference level. For the least developed, landlocked or island ACP States listed in Article 24 the percentage shall be 2.5%.

3. The request from the ACP State concerned shall be addressed to the Commission, which shall examine it in the light of the volume of resources available. The difference between the reference level and actual earnings shall constitute the basis of the transfer.

4. However, (a) should examination of the request, to the undertaken by the Commission in conjunction with the ACP State concerned, show that the fall in earnings from exports to the Community of the products in question is the result of a trade policy measure of the ACP State concerned adversely affecting exports to the Community in particular, the request shall not be admissible;

(b) should examination of the total exports of the requesting ACP State show a significant change, consultations shall be held between the Commission and the requesting State to determine whether such changes are likely to have an effect on the amount of the bans fer, if so to what extent.

5. Except in the case referred to in paragraph 4 (a) the Commission shall, in conjunction with the requesting ACP State, draw up a draft decision to make a transfer.

6. All necessary steps shall be taken to ensure that transfers are made rapidly, for example by means of advances, normally sixmonthly.

Article 20

The recipient ACP State shall decide how the resources will be used. It shall inform the Commission annually of the use to which it has put the resources transferred.:

Article 21

1. The amounts transferred shall not bear interest.

2. The ACP States which have received transfers shall contribute, in the five years following the allocation of each transfer, towards the reconstitution of the resources made available for the system by the Community.

3. Each ACP State shall help reconstitute the resources when it is found that the trend of its export earnings will so permit. To this effect, the Commission shall determine, for each year and for each product, and on the conditions specified in Article 17 (1), whether

--the unit value of the exports is higher than the reference unit value;

--the quantity actually exported to the Community is at least equal to the reference quantity;
If the two conditions are met at the same time, the recipient ACP State shall pay back into the system, within the limit of the transfers it has received, an amount equal to the reference quantity multiplied by the difference between the reference unit value and the actual unit value.

4. If, on expiry of the five-year period referred to in paragraph 2, the resources have not been fully reconstituted, the Council of Ministers, taking into consideration in particular the situation of and prospects for the balance of payments, exchange reserves and foreign indebtedness of the ACP States concerned, may decide that:

--the sums outstanding are to be reconstituted wholly or partially, in one or more instalments;

--rights to repayment are to be waived.

5. Paragraphs 2, 3 and 4 shall not apply to the ACP States listed in Article 48.

Article 22

For each transfer a "transfer agreement" shall be drawn up and concluded between the Commission and the ACP State concerned

Article 23

1. In order to ensure that the stabilization system functions efficiently and rapidly, statistical and customs co-operation shall be in stituted between the Community and the ACP States. The detailed arrangements for such co-operation shall be established by the Council of Ministers.

2. The ACP States and the Commission shall adopt by mutual agreement any practical measures facilitating the exchange of necessary information and the submission of requests for transfers, for example by producing a form for requesting transfers.

Article 24

The least developed, landlocked or island ACP States referred to in Article 17 (1) and (2) and Article 19 (2) are as follows:

--the Bahamas
--Barbados
--Botswana
--Burundi
--Central African Republic
--Chad
--Dahomey
--Equatorial Guinea
--Ethiopia
--Fiji
--the Gambia
--Grenada
--Guinea
--Guinea-Bissau
--Jamaica
--Lesotho
--Madagascar
--Malawi
--Mali
--Mauritania
--Mauritius
--Niger
--Rwanda
--Somalia
--'Sudan
--Swaziland
--Tanzania
--Togo
--Tonga
--Trinidad and Tobago
--Uganda
--Upper Volta
--Western Samoa
--Zambia
 

CHAPTER 2

Specific provisions concerning sugar

Article 25

1. Notwithstanding any other provisions of this Convention the Community undertakes for en indefinite period to purchase and import, at guaranteed prices, specific quantities of cane sugar, raw Of white, which originate in the ACP States producing and exporting cane sugar and which those States undertake to deliver to it.

2. Protocol No 3 annexed to this Convention determines the conditions of implementation of this Article.

TITLE III

Industrial co-operation

Article 26

The Community and the ACP States, acknowledging the pressing need for the industrial development of the latter, agree to take all measures necessary to bring about effective industrial co-operation.

Industrial Co-operation between the Community and the ACP States shall have the following objectives:

(a) to promote the development and diversification of industry in he ACP States and to help bring about a better distribution of industry both within those States and between them;

(b) to promote new relations in the industrial field between the Community, its Member States and the ACP States, in particular the establishment of new industrial and trade links between the industries of the Member States and those of the ACP States;

(c) to increase the links between industry and the other sectors of the economy, in particular agriculture;

(d) to facilitate the transfer of technology to the ACP States and to promote the adaptation of such technology to their specific conditions and needs, for example by expanding the capacity of the ACP States for research, for adaptation of technology and for training in industrial skills at all levels in these States;

(e) to promote the marketing of industrial products of the ACP States in foreign markets in order to increase their share of international trade in those products;

(f) to encourage the participation of nationals of ACP States, in particular that of small and medium-sized industrial firms, in the industrial development of those States;

(g) to encourage Community firms to participate in the industrial development of the ACP States, where those States so desire and in accordance with their economic and social objectives.

Article 27

In order to attain the objectives set out in Article 26, the Community shall help to carry out, by all the means provided for in the Convention, programmes, projects and schemes submitted to it on the initiative or with the agreement of the ACP States in the fields of industrial infrastructures and ventures, training, technology and research, small and medium-sized firms, industrial information and promotion, and trade co-operation.

Article 28

The Community shall contribute to the setting up and the extension of the infrastructure necessary for industrial development, particularly in the fields of transport and communications, energy and industrial research and training.

Article 29

The Community shall contribute to the setting up and the extension in the ACP States of industries processing raw materials and industries manufacturing finished and semi-finished products.

Article 30

At the request of the ACP States and on the basis of the programmes submitted by the latter, the Community shall contribute to the organization and financing of the training, at all levels, of personnel of the ACP States in industries and institutions within the Community. In addition, the Community shall contribute to the establishment and expansion of industrial training facilities in the ACP States.

Article 31

With a view to helping the ACP States to overcome obstacles encountered by them in matters of access to and adaptation of technology, the Community is prepared in particular to:

(a) keep the ACP States better informed on technological matters and assist them in selecting the technology best adapted to their needs;

(b) facilitate their contacts and relations with firms and institutions in possession of the appropriate technological know-how;

(c) facilitate the acquisition, on favourable terms and conditions, of patents and other industrial. property, in particular through financing and/or through other suitable arrangements with firms and institutions within the Community;

(d) contribute to the establishment and expansion of industrial research facilities in the ACP States with particular reference to the adaptation of available technology to the conditions and needs of those States.

Article 32

The Community shall contribute to the establishment and development of small and medium-sized industrial firms in the ACP States through financial and technical co-operation schemes adapted to the specific needs of such firms and covering inter alia:

(a) the financing of firms,

(b) the creation of appropriate infrastructure and industrial estates,

(c) vocational and advanced training,

(d) the setting up of specialized advisory services and credit facilities.

The development of these firms shall, as far as possible, be conducive to the strengthening of the complementary relationship between small and medium-sized industrial firms and of their links with large industrial firms.

Article 33

Industrial information and promotion schemes shall be carried out in order to secure and intensify regular information exchanges and the necessary contacts in the industrial field between the Community and the ACP States.

These schemes could have the following aims:

(a) to gather and disseminate all relevant information on the trends of industry and trade in the Community and on the conditions and possibilities for industrial development in the ACP States;

(b) to organize and facilitate contacts and meetings of all kinds between Community and ACP States' industrial policy-makers, promoters and firms;

(c) to carry out studies and appraisals aimed at pinpointing the practical opportunities for industrial co-operation with the Community in order to promote the industrial development of the ACP States;

(d) to contribute, through appropriate technical co-operation schemes, to the setting up, launching and running of the ACP States' industrial promotion bodies.

Article 34

In order to enable the ACP States to obtain full benefit from trade and other arrangements provided for in this Convention, trade promotion schemes shall be carried out to encourage the marketing of industrial products of ACP States both in the Community as well as in other external markets. Furthermore, programmes shall be drawn up jointly between the Community and the ACP States in order to stimulate and develop the trade of industrial products among the said States.

Article 35

1. A Committee on Industrial Co-operation shall be established. It shall be supervised by the Committee of Ambassadors.

2. The Committee on Industrial Co-operation shall;

(a) see to the implementation of this Title;

(b) examine the problems in the field of industrial co-operation submitted to it by the ACP States and/or by the Community,and suggest appropriate solutions;

(c) guide, supervise and control the activities of the Centre for Industrial Development referred to in Article 36 and report to the Committee of Ambassadors and, through it, to the Council of Ministers;

(d) submit from time to time reports and recommendations which it considers appropriate to the Committee of Ambassadors;

(e) perform such other functions as may be assigned to it by the Committee of Ambassadors;

3. The composition of the Committee on Industrial Co-operation and the details for its operation shall be determined by the Council of Ministers.

Article 36

A Centre for Industrial Development shall be set up. It shall have the following functions;

(a) to gather and disseminate in the Community and the ACP States all relevant information on the conditions of and opportunities for industrial co-operation;

(b) to have, at the request of the Community and the ACP States, studies carried out on the possibilities and potential for industrial development of the ACP States, bearing in mind the necessity for adaptation of technology to their needs and requirements, and to ensure their follow-up;

(c) to organize and facilitate contacts and meetings of all kinds between Community and ACP States' industrial policy-makers, promoters, and firms and financial institutions;

(d) to provide specific industrial information and support services;

(e) help to identify, on the basis of needs indicated by ACP States the opportunities for industrial training and applied research in the Community and in the ACP States, and to provide relevant information and recommendations.

The Centre's Statutes and rules of operation shall be adopted by the Council of Ministers on a proposal from the Committee of Ambassadors upon the entry into force of this Convention.

Article 37

Programmes, projects or schemes undertaken in the field of industrial co-operation and involving Community financing shall be implemented in accordance with Title IV, taking into account the particular characteristics of interventions in the industrial sector.

Article 38

1. Each ACP State shall endeavour to give as clear an indication as possible of its priority areas for industrial co-operation and the form it would like such co-operation to take. It will also take such steps as are necessary to promote effective co-operation within the framework of this Title with the Community and the Member States at with firms or nationals of Member States who comply with the developement programmes and priorities of the host ACP State.

2. The Community and its Member States, for their part, shall endeavour to set up measures to attract the participation of their firms and nationals in the industrial development e fforts of the ACP States concerned, and shall encourage such firms and nationals to adhere to the aspirations and development objectives of those ACP States.

Article 39

This Title shall not prevent any ACP State or groups of ACP States from entering into specific arrangements for the development in ACP States of agricultural, mineral, energy and other specific resources with a Member State or States of the Community, provided that these arrangements are compatible with this Convention. Such arrangements must be complementary to the efforts on industrialization and must not operate to the detriment of this Title.
 
 

TITLE IV
 

Financial and technical co-operation

Article 40

1. The purpose of economic, financial and technical co-operation is to correct the structural imbalances in the various sectors of the ACP States' economies. The co-operation shall relate to the execution of projects and programmes which contribute essentially to the economic and social development of the said States.

2. Such development shall consist in particular in the greater wellbeing of the population, improvement of the economic situation of the State, local authorities and firms, and the introduction of structures and factors whereby such improvement can be continued and extended by their own means.

3. This co-operation shall complement the efforts of the ACP States and shall be adapted to the characteristics of each of the said States.

Article 41

1. The Council of Ministers shall examine at least once a year whether the objectives referred to in Article 40 are being attained and shall also examine the general problems resulting from the implementation of financial and technical co-operation. It shall take stock, on the basis of information gathered both by the Community and the ACP States, of action undertaken in this context by the Community and by the ACP States. This stocktaking shall also cover regional co-operation and measures in favour of the least developed ACP States.

As regards the Community, the Commission shall submit to the Council of Ministers an annual report on the management of Community financial and technical aid. This report shall be drawn up in collaboration with the European Investment Bank (hereinafter called the " Bank") for the parts of the report which concern it. It shall in particular show the position as to the commitment, implementation and utilization of the aid, broken down by type of financing and by recipient State.

The ACP States for their part shall submit to the Council of Ministers any observations, information or proposals on the problems concerning the implementation, in their respective countries, of the economic, financial and technical co-operation, and also on the general problems of this co-operation.

The work on the annual stocktaking of financial and technical cooperation shall be prepared by the experts of the Community and of the ACP States who are responsible for the implementation of that co-operation.

2. On the basis of the information submitted by the Community and the ACP States and of the examination referred to in paragraph 1, the Council of Ministers shall define the policy and guidelines of financial and technical co-operation and shall formulate resolutions on the measures to be taken by the Community and the ACP States in order to ensure that the objectives of such cooperation are attained.

Article 42

For the duration of this Convention, the overall amount of the Community's aid shall be 3,390 million units of account. This amount comprises, 1. 3,000 million units of account from the European Development Fund (hereinafter called the "Fund"), allocated as follows:

(a) for the purposes set out in Article 40: 2,625 million units of account, consisting of:

--2,100 million units of account in the form of grants;

--430 million units of account in the form of special loans --95 million units of account in the form of risk capital;

(b) for the purposes set out in Title II, up to 375 million units of account, likewise from the Fund, in the form of transfers for the stabilization of export earnings.

2. For the purposes set out in Article 40, up to 390 million units of account in the form of loans from the Bank, made from its own resources on the terms and conditions provided for in its Statute, and supplemented, as a general rule, by a 3% interest rate subsidy, under the conditions laid down in Article 5 of Protocol No 2. The total cost of the interest rate subsidies shall be charged against the amounts of aid provided for in 1 (a) above.

Article 43

1. The method or methods of financing which may be contemplated for each project or programme shall be selected jointly by the Community and the ACP State or States concerned with a view to the best possible use being made of the resources available and by reference to the level of development and the economic and financial situation of the ACP State or ACP States concerned. Moreover, account shall be taken of the factors which ensure the servicing of repayable aid.The definitive choice of methods of financing for projects and programmes shall be made only at an appropriate stage in the appraisal of such projects and programmes.

2. Account shall also be taken of the nature of the project or programme, of its prospects of economic and financial profitability and of its economic and social impact. In particular, productive capital projects in the industrial, tourism and mining sectors shall be given priority financing by means of loans from the Bank and risk capital.

Article 44

1. Where appropriate, a number of methods may be combined for financing a project or programme.

2. With the agreement of the ACP State or ACP States concerned, financial aid from the Community may take the form of co-financ ing with participation by, in particular, credit and development agencies and institutions, firms, Member States, ACP States, the countries or international finance organizations.

Article 45

1. Grants and special loans may be made available to or through the ACP State concerned.

2. Where these funds are on-lent through the ACP State concer ned, the terms and- procedure for the onlending by the intemmediate recipient to the final borrower shall be laid down between the Community and the State concerned in an intermediate financing agreement interest.
3. Any benefits accruing to the intermediate recipient, either b cause that recipient receives a grant or a loan for which the intere rate or the repayment period is more favourable than that of the fin loan, shall be employed by the intemmediate recipient for the pu poses and on the terms set out in the intemmediate financing agre meet.

Article 46

1. The financing of projects and programmes comprises the meat required for their execution, such as:

--capital projects in the fields of rural development, industrializ~ tion,.energy, mining, tourism, and economic and social infre structure;

--schemes to improve the structure of agricultural production; --technical co-operation schemes, in particular in the fields a training and technological adaptation or innovation;

--industrial information and promotion schemes;

--marketing and sales promotion schemes;

--specific schemes to help small and medium-sized nations fimms;

--microprojects for grassroots development, in particular in rura areas.

2. Financial and technical co-operation shall not cover current ad ministrative, maintenance and operating expenses.

3. Financial aid may cover import costs and local expenditure ret quired for the execution of projects and programmes.

Article 47

1. In the implementation of financial and technical co-operation, the Community shall provide effective assistance for attaining the objectives which the ACP States set themselves in the context of regional and interregional co-operation.

This assistance shall aim to:

(a) accelerate economic co-operation and development both within and between the regions of the ACP States;

(b) accelerate diversification of the economies of the ACP States;

(c) reduce the economic dependence of the ACP States on imports by maximising output of those products for which the ACP States in question have real potential;

(d) create sufficiently wide markets within the ACP States and neighbouring States by removing the obstacles which hinder the development and integration of those markets in order to promote d trade between the ACP States;

(e) maximize the use of resources and services in the ACP States.

2. To this end approximately 10% of the total financial resources provided for in Article 42 for the economic and social development e of the ACP States shall be reserved for financing their regional projects.

Article 48

1. In the implementation of financial and technical co-operation, special attention shall be paid to the needs of the least developed ACP States so as to reduce the specific obstacles which impede their development and prevent them from taking full advantage of the opportunities offered by financial and technical co-operation.

2. The following ACP States shall be eligible, according to their par-4 ticular needs, for the special measures established under this Article: Botswana Burundi Central African Republic Chad Dahomey Ethiopia the Gambia Guinea Guinea-Bissau Lesotho Malawi Mali Mauritania Niger Rwanda Somalia Sudan Swaziland Tanzania Togo Tonga Uganda Upper Volta Western Samoa.

3. The list of ACP States in paragraph 2 may be amended by decision of the Council of Ministers: --where a third State in a comparable economic situation accedes to this Convention;

--where the economic situation of an ACP State undergoes a medical and lasting change either so as to necessitate the applications. Of special measures or so that this treatment is no longer warranted.

Article 49

1. The following shall be eigible for financial and technical co-operation:

(a) the ACP States;

(b) the regional or interstate bodies to which the ACP States belong and which are authorised by the said States;

(c) the joint bodies set up by the Community and the ACP States and authorised by the latter to attain certain specific objectives, notably in the field of industrial and trade co-operation.

2. Subject to the agreement of the ACP State or ACP States concerned, the following shall be eligible for such co-operation in respect of projects or programmes approved by the latter:

(a) local authorities and public or semi-public development agencies of the ACP States, in particular their development banks;

(b) private bodies working in the countries concerned for the economic and social development of the population of those ACP States;

(c) firms carrying out their activities, in accordance with industrial and business management methods, which are set up as companies or firms of an ACP State within the meaning of Article 63

(d) groups of producers that are nationals of the ACP States or like bodies, and, where no such groups or bodies exist, the produce themselves;

(e) for training purposes, scholarship holders and trainees.

Article 50

1. There shall be close co-operation between the Community and the ACP States in implementing aid measures financed by the former. This co-operation shall be achieved through active participation by the ACP State or group of ACP States concerned in each of the various stages of a project: the aid programming, the submission and appraisal of projects, the preparation of financing decisions, execution of projects and final evaluation of the results, in accordance with the various procedures laid down in Articles 51 to 57.

2. As regards project financing for which the Bank is responsible application of the principles defined in Articles 51 to 58 may be ad apted, in concert with the ACP State or ACP States concerned, to take account of the nature of the operations financed and of the Bank's procedures under its Statute.

Article 51

1. Community aid, which is complementary to the ACP States own efforts, shall be integrated in the economic and social develop ment plans and programmes of the said States so that projects un dertaken with the financial support of the Community dovetail with the objectives and priorities set up by those States.

2. At the beginning of the period covered by this Convention. Community aid shall be programmed, in conjunction with each re cipient State in such a way that the latter can obtain as clear an idea as possible of the aid, in particular as regards the amount and terms, can expect during that period and especially of specific objectives Which this aid may meet. This programme shall be drawn up on the basis of proposals made by each ACP State, in which it has fixed its objectives and priorities. Projects or programmes already identified on an indicative basis may be the subject of a provisional timetable as regards preparation.

3. The Community indicative aid programme for each ACP State shall be drawn up by mutual agreement by the competent bodies of the Community and those of the ACP State concerned. It shall then be the subject of an exchange of views, at the beginning of the period covered by this Convention, between the representatives of the Community and those of the ACP State concerned. This exchange of views shall enable the ACP State to set out its development policy and priorities.

4. The aid programmes shall be sufficiently flexible to enable ac count to be taken of changes occurring in the economic situation of the various ACP States, and any modifications of their initial priorities. Therefore, each programme may be reviewed whenever necessary during the period covered by this Convention.

5. These programmes shall not cover the exceptional aid referred to in Article 59 or the measures for stabilizing export earnings referred to in Title II.

Article 52

1. Preparation of the projects and programmes which come within the framework of the Community aid programme drawn up by mutual agreement shall be the responsibility of the ACE' States concerned or of other beneficiaries approved by them. The Community may, where those States so request, provide technical assistance for drawing up the dossiers of projects or programmes.

2. Such dossiers shall be submitted to the Community as and when they are ready by the beneficiaries specified in Article 49 (1), or, with the express agreement of the ACP State or ACP States concerned, by those specified in Article 49(2).

Article 53

1. The Community shall appraise projects and programmes in close collaboration with the ACP States and any other beneficiaries. The technical, social, economic, trade, financial, organizational and management aspects of such projects or programmes shall be reviewed systematically.

2. The aim of appraisal is:

(a) to ensure that the projects and programmes stem from economic or social development plans or programmes of the ACP States;

(b) to assess, as far as possible by means of an economic evaluation, the effectiveness of each project or programme by setting the effects it is expected to produce against the resources to be invested in it. In each project the expected effects shall be the practical expression of a number of specific development objectives of the ACP State or ACP States concerned.

On this basis, appraisal shall ensure that, as far as possible, the measures selected constitute the most effective and profitable method of attaining these objectives, taking into account the various constraints on each ACP State;

(c) to verify that the conditions guaranteeing the successful conclusion and the viability of the projects or programmes are met, which involves;

--verifying that the projects as conceived are suitable for bringing about the effects sought and that the means to be used commensurate with the circumstances and resources of the ACP State or region concerned;

--and furthermore guaranteeing that the staff and other means particularly financial, necessary for operating and maintaining the investments and for covering incidental project costs are actually available. Particular attention shall be paid here to the possibility of the project being managed by national personnel;

Article 54

1. Financing proposals, which summarize the conclusions of the appraisal and are submitted to the Community's decision-making body, shall be drawn up in close collaboration between the competent departments of the Community and those of the ACP State or ACP States concerned.

The final version of each financing proposal shall be transmitted by the competent departments of the Community simultaneously to the Community and to the ACP States concerned.

2. All projects or programmes put forward officially in accordance with Article 52 by an ACP State or ACP States, whether or not selected by the competent departments of the Community, shall be brought to the attention of the Community body responsible for taking financing decisions.

3. Where the Community body responsible for delivering an opinion on projects fails to deliver a favourable opinion, the competent departments of the Community shall consult the representatives of the ACP State or ACP States concerned on further action to be taken, in particular on the advisability of submitting the dossier afresh, possibly in a modified form, to the relevant Community body.

Before that body gives its final opinion, the representatives of the ACP State or ACP States concerned may request a hearing by the representatives of the Community in order to be able to state their grounds for the project.

Should the final opinion delivered by that body not be favourable, the competent departments of the Community shall consult afresh with the representatives of the ACP State or ACP States concerned before deciding whether the project should be submitted as it stands to the Community's decision-making bodies or whether it should be withdrawn or modified.

Article 55

The ACP States, or the other beneficiaries authorized by them, shall be responsible for the execution of projects financed by the Community.   Accordingly, they shall be responsible for negotiating and concluding works and supply contracts and technical co-operation contracts.

Article 56

1. As regards operations financed by the Community, participation in tendering procedures and other procedures for the award of contracts shall be open on equal terms to all natural and legal persons of the Member States and ACP States.

2. Paragraph 1 shall be without projudice to measures intended to assist construction firms or manufacturing firms of the ACP States concerned, or of another ACP State, to take part in the execution of works contracts or supply contracts.

3. Paragraph 1 does not mean that the funds paid over by the Community must be used exclusively for the purchase of goods or for the remuneration of services in the Member States and in the ACP States.

Any participation by certain third countries in contracts financed by the Community must, however, be of an exceptional nature and be authorized case-by-case by the competent body of the Community, account being taken in particular of a desire to avoid excessive increases in the cost of projects attributable either to the distances involved and transport difficulties or to the delivery dates.

Participation by third countries may also be authorized where the Community participates in the financing of regional or interregional co-operation schemes involving third countries and in the joint financing of projects with other providers of funds.

Article 57

1. The effects and results of completed projects, and the physical state of the work carried out, shall be evaluated regularly and jointly by the competent departments of the Community and of the ACP State or ACP States concerned in order to ensure that the objectives set are attained under the best conditions of Evaluations may also be made of projects in progress where this is warranted by their nature, importance or difficulty of execution.

2. The competent institutions of the Community and of the ACP States concerned shall, each for their respective parts, take the measures which evaluation shows to be necessary. The Council of Ministers shall be kept informed of such measures by the Commission and each ACP State for the purposes of Article 41.

Article 58

1. The management and maintenance of work carried out within the context of financial and technical co-operation shall be the responsibility of the ACP States or other beneficiaries.

2. Exceptionally, and by way of derogation from Article 46 (2), in particular under the circumstances specified in Article 10 of Protocol No 2, supplementary aid may be provided temporarily and on a diminishing scale in order to ensure that full use is made of investments which are of special importance for the economic and social development of the ACP State concerned and the running of which temporarily constitutes a truly excessive burden for the ACP State or other beneficiaries.

Article 59

1. Exceptional aid may be accorded to ACP States faced with ser ious difficulties resulting from natural disasters or comparable extraordinary circumstances.

2. For the purposes of financing the exceptional aid referred to in paragraph 1, a special appropriation shall be constituted within the Fund.

3. The special appropriation shall initially be fixed at 50 million units of account. At the end of each year of application of this Convention this appropriation shall be restored to its initial level.

The total amount of monies transferred from the Fund to the special appropriation during the period of application of the Convention may not exceed 150 million units of account. Upon expiry of the Convention any monies transferred to the special appropriation which have not been committed for exceptional aid shall be returned to the Fund proper for financing other schemes falling within the field of application of financial and technical cooperation, unless the Council of Ministers decides otherwise.

In the event of the special appropriation being exhausted before the expiry of this Convention, the Community and the ACP States shall adopt, within the relevant joint bodies, appropriate measures to deal with the situations described in paragraph 1.

4. Exceptional aid shall be non-reimbursable. It shall be allocated on a case-by-case basis.

5. Exceptional aid shall help finance the most suitable means of re medying the serious difficulties referred to in paragraph 1. These means may take the form of works, supplies or provision of services, or cash payments.

6. Exceptional aid shall not be used for dealing with the harmful effects of the instability of export earnings, which are the subject of Title II.

7. The arrangements for allocating exceptional aid, for payment; and for implementing the programmes shall be worked out under an emergency procedure, with account being taken of the provisions of Article 54.

Article 60

The fiscal and customs arrangements applicable in the ACP States to contracts financed by the Community shall be adopted by a decision of the Council of Ministers at its first meeting following the date of entry into force of this Convention.

Article 61

In the event of failure of an ACP State to ratify this Convention pursuant to Title VII, or denunciation of this Convention in accordance with that Title, the Contracting Parties shall be obliged to adjust the amounts of the financial aid provided for in this Convention.

TITLE V

Provisions relating to establishment, services, payments and capital movements
 

CHAPTER 1

Provisions relating to establishment and services

Article 62

As regards the arrangements that may be applied in matters of establishment and provision of services, the ACP States on the one hand and the Member States on the other shall treat nationals and companies or firms of Member States and nationals and companies or firms of the ACP States respectively on a non-discriminatory basis. However, if, for a given activity, an ACP State or a Member State is unable to provide such treatment, the Member States or the ACP States, as the case may be, shall not be bound to accord such treatment for this activity to the nationals and companies or firms of the State concerned.

Article 63

For the purpose of this Convention " companies or firms" means companies or firms constituted under civil or commercial law, including co-operative societies and other legal persons governed by public or private law, save for those which are non-profit-making.

"Companies or firms of a Member State or of an ACP State" means companies or firms formed in accordance with the law of a Member State or ACP State and whose registered of fice, central administration or principal place of business is in a Member State or ACP State; however, a company or firm having only its registered office in a Member State or ACP State must be engaged in an activity which has an effective and continuous link with the economy of that Member State or ACP State.

Article 64

At the request of the Community or of the ACP States, the Council of Ministers shall examine any problems raised by the application of Articles 62 and 63. It shall also formulate any relevant recommendations.

CHAPTER 2

Provisions relating to current payments and capital movements

Article 65

With regard to capital movements linked with investments and to current payments, the Contracting Parties shall refrain from taking action in the field of foreign exchange transactions which would be incompatible with their obligations under this Convention resulting from the provisions relating to trade in goods, to services, establishment and industrial co-operation. These obligations shall not, however, prevent the Contracting Parties from adopting the necessary protective measures, should this be justified by reasons relating to serious economic difficulties or severe balance of payments.

Article 66

In respect of foreign exchange transactions linked with investments and current payments, the ACP States on the one hand and the Member States on the other shall avoid, as far as possible, taking discriminatory measures vis-a-vis each other or according more favourable treatment to third States, taking full account of the evolving nature of the international monetary system, the existence of specific monetary arrangements and balance of payments problems.

To the extent that such measures or treatment are unavoidable they will be maintained or introduced in accordance with international monetary rules and every effort will be made to minimize any adverse effects on the Parties concerned.
Article 67

Throughout the duration of the loans and risk capital operations provided for in Article 42, each of the ACP States undertakes:
--to place at the disposal of the beneficiaries referred to in Article 49 the currency necessary for the payment of interest and commission on and amortization of loans and quasi-capital aid granted for the implementation of aid measures on their territory;
--to make available to the Bank the foreign exchange necessary for the transfer of all sums received by it in national currency which represent the net revenue and proceeds from transactions involving the acquisition by the Community of holdings in the capital of firms.
Article 68

At the request of the Community or of the ACP States, the Council of Ministers shall examine any problems raised by the application of Articles 65 to 67. It shall also formulate any relevant recommendations.
TITLE VI

Institutions

Article 69

The Institutions of this Convention are the Council of Ministers assisted by the Committee of Ambassadors, and the Consultative Assembly.

Article 70

1. The Council of Ministers shall be composed, on the one hand of the members of the Council of the European Communities and of members of the Commission of the European Communities and on the other hand, of a member of the Government of each of the ACP States.

2. Any member of the Council of Ministers unable to attend ma, be represented. The representative shall exercise all the rights of the accredited member.

3. The proceedings of the Council of Ministers shall be valid only if half the members of the Council of the European Communities one member of the Commission and two thirds of the accredited members representing the Governments of the ACP States are present.

4. The Council of Ministers shall lay down its rules of procedure.

Article 71

The office of President of the Council of Ministers shall be held alternately by a member of the Council of the European Communities and a member of the Government of and ACP State, the latter to be designated by the ACP States.

Article 72

1. Meetings of the Council of Ministers shall be called once a year by its President.

2. The Council of Ministers shall, in addition, meet whenever necessary, in accordance with the conditions laid down in its rules of procedure.

Article 73

1. The Council of Ministers shall act by mutual agreement between the Community on the one hand and the ACP States on the other.

2. The Community on the one hand and the ACP States on the other shall each, by means of an internal protocol, determine the procedure for arriving at their respective positions.

Article 74

1. The Council of Ministers shall define the broad outlines of the work to be undertaken in the context of the application f this Convention.

2. The Council of Ministers shall periodically review the results of the arrangements under this Convention and shall take such measures as may be necessary for the attainment of the objectives of this Convention.

3. Where provided for in this Convention, the Council of Ministers shall have the power to take decisions; such decisions shall be binding on the Contracting Parties, which must take such measures as are required to implement these decisions.

4. The Council of Ministers may likewise formulate such resolutions, recommendations or opinions as it may deem necessary to attain the common objectives and to ensure the smooth functioning of the arrangements of this Convention.

5. The Council of Ministers shall publish an annual report and such other information as it considers appropriate.

6. The Council of Ministers may make all the arrangements that are appropriate for ensuring the maintenance of effective contacts, consultations and co-operation between the economic and social sectors of the Member States and of the ACP States.

7. The Community or the ACP States may raise in the Council of Ministers any problems arising from the application of this Convention.

8. Where provided for in this Convention, consultations shall take place, at the request of the Community or of the ACP States, within the Council of Ministers, in accordance with the conditions laid down in the rules of procedure.

9. The Council of Ministers may set up committees or groups and ad hoc working groups, to undertake such activities as it may determine.

10. At the request of one of the Contracting Parties, exchanges of view may take place on questions having direct repercussions on the matters covered by this Convention.

11. By agreement among the parties, exchanges of views may take place on other economic or technical questions which are of mutual interest.

Article 75

The Council of Ministers may, where necessary, delegate to the Committee of Ambassadors any of its powers. In this event, the Committee of Ambassadors shall give its decisions in accordance with the conditions laid down in Article 73.

Article 76

The Committee of Ambassadors shall be composed, on the one hand, of one representative of each Member State and one representative of the Commission and, on the other, of one representative - of each ACP State.

Article 77

1. The Committee of Ambassadors shall assist in the performance of its functions the Council of Ministers shall carry out any mandate entrusted to it by the Council of Ministers.

2. The Committee of Ambassadors shall exercise such other powers and perform such other duties as are assigned to it by the Council of Ministers.

3. The Committee of Ambassadors shall keep under review the functioning of this Convention and the development of the objectives as defined by the Council of Ministers.

4. The Committee of Ambassadors shall account for its actions to the Council of Ministers particularly in matters which have been the subject of delegation of powers. It shall also submit to the Council of Ministers any pertinent proposal and such resolutions, recommendations or opinions as it may deem necessary or consider appropriate.

The Committee of Ambassadors shall supervise the work of all the committees and all other bodies or working groups, whether standing or ad hoc, established or provided for by or under this Convention and submit periodical reports to the Council of Ministers.

Article 78

The office of Chairman of the Committee of Ambassadors shall be held alternately by a representative of a Member State designated by the Community and a representative of an ACP State designated by the ACP States.

The Committee of Ambassadors shall lay down its rules of procedure which shall be submitted to the Council of Ministers for approval.

Article 79

The secretariat duties and other work necessary for the functioning of the Council of Ministers and the Committee of Ambassadors or other joint bodies shall be carried out on a basis of parity and in accordance with the conditions laid down in the rules of procedure of the Council of Ministers.

Article 80

1. The Consultative Assembly shall be composed on a basis of parity of members of the Assembly on the side of the Community and of the representatives designated by the ACP States on the other.

2. The Consultative Assembly shall appoint its Bureau and shall adopt its own rules of procedure.

3. The Consultative Assembly shall meet at least once a year.

4. Each year, the Council of Ministers shall submit a report on its activities to the Consultative Assembly.

5. The Consultative Assembly may set up ad hoc consultative committees to undertake such specific activities as it may determine.

6. The Consultative Assembly may adopt resolutions on matters concerning or covered by this Convention.

Article 81

1. Any dispute which arises between one or more Member States or the Community on the one hand, and one or more ACP States on the other, concerning the interpretation or the application of this Convention may be placed before the Council of Ministers.

2. Where circumstances permit, and subject to the Council of Ministers being informed, so that any parties concerned may assert their rights, the Contracting Parties may have recourse to a good of fices procedure.

3. If the Council of Ministers fails to settle the dispute at its next meeting, 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 Council of Ministers shall appoint a third arbitrator.

The decisions of the arbitrators shall be taken by majority vote.

Each Party to the dispute must take the measures required for the implementation of the arbitrators' decision.

Article 82

The operating expenses of the Institutions under this Convention shall be defrayed in accordance with the terms set out in Protocol No 4 to this Convention.

Article 83

The privileges and immunities for the purpose of this Convention shall be as laid down in Protocol No 5 to this Convention.

 TITLE VII

 General and final provisions

Article 84

No treaty, convention, agreement or arrangement of any kind between one or more Member States and one or more ACP State; may impede the implementation of this Convention.

Article 85

1. This Convention shall apply to the European territories to which the Treaty establishing the European Economic Community applies, in accordance with the conditions set out in that Treaty, on the one hand, and to the territories of the ACP States on the other.

2. Title I of this Convention shall also apply to the relations between the French Overseas Departments and the ACP States.

Article 86

1. As regards the Community, this Convention shall be validly concluded by a decision of the Council of the European Communities taken in accordance with the provisions of the Treaty and notified to the Parties. It will be ratified by the Signatory States in conformity with their respective constitutional requirements.

2. The instruments of ratification and the act of notification of the conclusion of the Convention shall be deposited, as concerns the ACP States, with the Secretariat of the Council of the European Communities and, as concerns the Community and its Member States, with the Secretariat of the ACP States. The Secretariats shall forthwith give notice thereof to the Signatory States and the Community.

Article 87

1. This Convention shall enter into force on the first day of the second month following the date of deposit of the instruments of ratification of the Member States and of at least two thirds of the ACP States, and of the act of notification of the conclusion of the Convention by the Community.

2. Any ACP State which has not completed the procedures set out in Article 86 by the date of the entry into force of this Convention as specified in paragraph 1 may do so only within the twelve months following such entry into force and shall be able to proceed with these procedures only during the twelve months following such entry into force, unless before the expiry of this period it gives notice to the Council of Ministers of its intention to complete these procedures not later than six months after this period and on condition that it undertakes the deposit of its instrument of ratification within the same time-limit.

3. As regards those ACP States which have not completed the procedures set out in Article 86 by the date of entry into force of this Convention as specified in paragraph 1, this Convention shall become applicable on the first day of the second month following the completion of the said procedures.

4. Signatory ACP States which ratify this Convention in accordance with the conditions laid down in paragraph 2 shall recognize the validity of all measures taken in implementation of this Convention between the date of its entry into force and the date when its provisions become applicable to them. Subject to any extension which may be granted to them by the Council of Ministers they shall, not later than six months following the completion of the procedures referred to in Article 86, carry out all the obligations which devolve upon them under the terms of this Convention or of implementing decisions adopted by the Council of Ministers.

5. The rules of procedure of the Institutions set up under this Convention shall lay down whether and under what conditions the representatives of Signatory States which, on the date of entry into force of this Convention have not yet completed the procedures referred to in Article 86, shall sit in those Institutions as observers. The arrangements thus adopted shall be effective only until the date on which this Convention becomes applicable to these States; such arrangements shall in any case cease to apply on the date on which, pursuant to paragraph 2, the State concerned may no longer ratify the Convention.

Article 88

1. The Council of Ministers shall be informed of any request by any State for membership of, or association with, the Community.

2. The Council of Ministers shall be informed of any request made by any State wishing to become a member of an economic grouping composed of ACP States.

Article 89

1. Any request for accession to this Convention by a country or territory to which Part Four of the Treaty applies, and which becomes independent, shall be referred to the Council of Ministers.

With the approval of the Council of Ministers, the country in question shall accede to this Convention by depositing an instrument of accession with the Secretariat of the Council of the European Communities which shall transmit a certified copy to the Secretariat of the ACP States and shall give notice thereof to the Signatory States.

2. That State shall then enjoy the same rights and be subject to the same obligations as the ACP States. Such accession shall not adversely affect the advantages accruing to the ACP States signatory to this Convention from the provisions on financial and technical cooperation and on the stabilization of export earnings.

Article 90

Any request for accession to this Convention submitted by a State whose economic structure and production are comparable with those of the ACP States shall require approval by the Council of Ministers. The State concerned may accede to this Convention by concluding an agreement with the Community.

That State shall then enjoy the same rights and be subject to the same obligations as the ACP States.

The Agreement may however stipulate the date on which certain of these rights and obligations shall become applicable to that State.

Such accession shall not, however, adversely affect the advantages accruing to the ACP States signatory to this Convention from the provisions on financial and technical co-operation, the stabilization of export earnings and industrial co-operation.

Article 91

This Convention shall expire after a period of five years from the date of its signature, namely 1 March 1980.

Eighteen months before the end of this period the Contracting Parties shall enter into negotiations in order to examine what provisions shall subsequently govern relations between the Community and its Member States and the ACP States.

The Council of Ministers shall adopt any transitional measures that may be required until the new Convention comes into force.

Article 92

This Convention may be denounced by the Community in respect of each ACP State and by each ACP State in respect of the Community, upon six months' notice.

Article 93

The Protocols annexed to this Convention shall form an integral part thereof.

Article 94

This Convention, drawn up in two copies in the Danish, Dutch, English, French, German and Italian languages, all texts being equally authentic, shall be deposited in the archives of the General Secretariat of the Council of the European Communities and the Secretariat of the ACP States which shall both transmit a certified copy to the Government of each of the Signatory States.

PROTOCOL No 1

concerning the definition of the concept of "originating products" and methods of administrative co-operation

 TITLE I

Definition of the concept of originating products

Article 1

1. For the purpose of implementing the Convention and without prejudice to paragraphs 3 and 4, the following products shall be considered as products originating in an ACP State, under the condition that they were transported directly, within the meaning of Article 5:

(a) products wholly obtained in one or more ACP States,
(b) products obtained in one or more ACP States in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 3.
2. For the purpose of implementing paragraph 1, the ACP States are considered as being one territory.

3. When products wholly obtained in the Community or in the countries and territories undergo working or processing in one or more ACP States, they shall be considered as having been wholly produced in that or those ACP States, under the condition that the products were transported directly within the meaning of Article 5.

4. Working and processing carried out in the Community or in the "countries and territories", shall be considered as having been carried out in one or more ACP States, when the final products undergo working or processing in one or more ACP States, under the condition that the products were transported directly within the meaning of Article 5.

5. For the purpose of implementing the previous paragraphs, and provided that all the conditions laid down in those paragraphs are fulfilled, the products obtained in one or more ACP States shall be considered as products originating in the ACP State where the last working processing took place. For this purpose the working or processing listed in Article 3 (3) (a), (b), (c) and (d) shall not be considered as working or processing, nor shall a combination of such working or of such processing.

6. The products in List C in Annex IV shall be temporarily excluded from the scope of this Protocol.

Article 2

The following shall be considered as wholly obtained either in one or more ACP States, in the Community or in the "countries and territories" within the meaning of Article 1 (1) (a) and (3): (a) mineral products extracted from their soil or from their seabed; (b) vegetable products harvested therein; (c) live animals born and raised therein; (d) products from live animals raised therein; (e) products obtained by hunting or fishing conducted therein;

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

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

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

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

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

Article 3

1. For the purpose of implementing Article 1 (1) (b) the following shall be considered as sufficient working or processing:

(a) working or processing as a result of which the goods obtained receive a classification under a tariff heading other than that covering each of the products worked or processed, except, however, working or processing specified in List A in Annex II, where the special provisions of that list apply;

(b) working or processing specified in List B in Annex III.

"Sections", "Chapters" and "tariff headings" shall mean the Sections, Chapters and headings in the Brussels Nomenclature for the Classification of Goods in Customs Tariffs.

2. When, for a given product obtained, a percentage rule limits in List A and in List B the value of the materials and parts which can be used, the total value of these materials and parts, whether or not they have changed tariff heading in the course of the working, processing or assembly within the limits and under the conditions laid down in each of those two lists, may not exceed, in relation to the value of the product obtained, the value corresponding either to the common rate, if the rates are identical in both lists, or to the higher of the two if they are different.

3. For the purpose of implementing Article 3 (1) (a) the following shall always be considered as insufficient working or processing to confer the status of originating products, whether or not there is charge of tariff heading:

(a) operations to ensure the preservation of merchandise 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 packing and breaking up and assembly of consign ments;

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

(d) affixing marks, labels or other like distinguishing signs on pro ducts 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 con sidered as originating either in the Community, in an ACP State or in the "countries and territories";

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

(g) a combination of two or more operations specified in subpara graphs

(a) to (f);

(b) slaughter of animals.

Article 4

Where the Lists A and B referred to in Article 3 provide that goods obtained in an ACP State shall be considered as originating therein only if the value of the products worked or processed does not exceed a given percentage of the value of the goods obtained, the values to be taken into consideration for such percentage shall be:

--on the one hand, as regards products whose importation can be proved: their customs value at the time of importation;

--as regards products of undetermined origin: the earliest ascertainable price paid for such products in the territory of the Contracting Party where manufacture takes place;

--and on the other hand, the ex-works price of the goods obtained less internal taxes refunded or refundable on exportation.

Article 5

1. For the purpose of implementing Article 1(1), (3) and (4), originating products whose transport is effected without entering into the territory other than that of the parties concerned are considered as transported directly from the ACP States to the Community or from the Community or the "countries and territories" to the ACP States. Originating goods constituting one single consignment may be transported through the territory other than that of the Community or the ACP States or the "countries and territories", with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the crossing of the latter territory is justified for geographical reasons or the needs of transport and that the products have not entered into commerce or been delivered for home use and have not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition.

Interruptions or changes in the method of transport due to force majeure or consequent upon conditions at sea shall not affect the application of the preferential treatment laid down in this Protocol, provided that the goods have not, during these interruptions or changes, entered into commerce or been delivered for home use and have not undergone any operations other than those designed to preserve them in good condition.

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

(a) a through bill of lading issued in the exporting beneficiary country covering the passage through the country of transit;
(b) or a certificate issued by the customs authorities of the country of transit:
--giving an exact description of the goods,
--stating the dates of unloading and re-loading of the goods or of their embarkation or disembarkation, identifying the ships used,
--certifying the conditions under which the goods remained in the transit country,
(c) or failing these, any substantiating documents.

TITLE II

Arrangements for administrative co-operation

Article 6

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

However, the evidence of originating status, within the meaning of this Protocol, of products which form the subject of postal consignments (including parcels), provided that they consist only of originating products and that the value does not exceed 1,000 units of account per consignment, is given by a form EUR. 2, of which a specimen is given in Annex VI to this Protocol.

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

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

Article 7

1. A movement certificate EUR. 1 shall be issued by the customs authorities of the exporting ACP State when the goods to which i] relates are exported. It shall be made available to the exporter a; soon as actual exportation has been effected or ensured.

2. In exceptional circumstances a movement certificate EUR. I may also be issued after exportation of the goods to which it relates if it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances. In this case, the certificate shall bear a special reference to the conditions in which it was issued.

3. A movement certificate EUR. 1 shall be issued only on application having been made in writing by the exporter. Such application shall be made on a form, of which a specimen is given in Annex V to this Protocol, which shall be completed in accordance with this Protocol.

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

5. Applications for movement certificates EUR. 1 must be preserved for at least three years by the customs authorities of the exporting country.

Article 8

1. The movement certificate EUR. 1 shall be issued by the customs authorities of the exporting ACP State, if the goods can be considered "originating products" within the meaning of this Protocol.

2. For the purpose of verifying whether the conditions stated in paragraph 1 have been met, the customs authorities shall have the right to call for any documentary evidence or to carry out any check which they consider appropriate.

3. It shall be the responsibility of the customs authorities of the exporting State to ensure that forms referred to in Article 9 are duly completed. In particular, they shall check whether the space reserved for the description of the goods has been completed in such a manner as to exclude all possibility of fraudulent additions. To this end, the description of the goods must be indicated without leaving any blank lines. Where the space is not completely filled a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

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

Article 9

Movement certificates EUR. 1 shall be made out on the form of which a specimen is given in Annex V to this Protocol. This form shall be printed in one or more of the languages in which the Convention is drawn up. Certificates shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State; if they are handwritten, they shall be completed in ink and in capital letters.

Each certificate shall measure 210x297 mm, a tolerance of up to plus 8 mm or minus 5 mm in the length may be allowed. The paper used must be white-sized writing paper 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.

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

Article 10

1. Under the responsibility of the exporter, he or his authorized re presentative shall request the issue of a movement certificate EUR. 1.

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

Article 11

1. A movement certificate EUR. I must be submitted, within five months of the date of issue by the customs authorities of the export ing State, to the customs authorities of the importing State when the goods are entered.

2. When the products enter territories other than those of the ACP States the Community or the "countries and territories", the time limit laid down in paragraph I for the submission of the certificate is extended to ten months.

Article 12

Movement certificates EUR. I shall be submitted to customs au thorities in the importing State, in accordance with the procedure; laid down by that State. The said authorities may require a transla tion of a certificate. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the goods meet the conditions required for the implementation of the Convention.

Article 13

1. A movement certificate EUR. I which is submitted to the customs authorities of the importing State after the final date for presentation specified in Article 11 may be accepted for the purpose of applying preferential treatment, where the failure to submit the certificate by the final date set is due to reasons of force majeure or exceptional circumstances.

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

Article 14

The discovery of slight discrepancies between the statement made in the movement certificate EUR. I and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the goods shall not ipso facto render the certificate null and void if it is duly established that the certificate does correspond to the goods submitted.

Article 15

Form EUR. 2, a specimen of which is given in Annex VI, shall be completed by the exporter. It shall be made out in one of the languages in which the Convention is drawn up and in accordance with the provisions of the domestic law of the exporting State. If it is handwritten it must be completed in ink and in capital letters.

Form EUR. 2 shall be composed of two parts, each part being 210x 148 mm. The paper used shall be white-sized writing paper not containing mechanical pulp and weighing riot less than 64 g/m2. The exporting States may reserve the right to print the forms themselves or may have them printed by printers they have approved.

In the latter case each form must include a reference to such approval. In addition, each part must bear the distinctive sign attributed to the approved printer and a serial number, either printed or not, by which it can be identified.

A form EUR. 2 shall be completed for each postal consignment. After completing and signing the two parts of the form, the exporter shall, in the case of consignments by parcel post, attach the two parts to the despatch note.

In the case of consignments by letter post, the exporter shall attach Part I firmly to the consignment and insert Part 2 inside it. These provisions do not exempt exporters from complying with any other formalities required by customs or postal regulations.

Article 16

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

2. Importations which are occasional and consist solely of goods for the personal use of the recipients or travellers or their families shall not be considered as importations by way of trade if it is evident from the nature and quantity of the goods that no commercial purpose is in view. Furthermore, the total value of these goods must not exceed 60 units of account in the case of small packages or 200 units of account in the case of the contents of travellers' personal luggage.

Article 17

1. Goods sent from an ACP State for exhibition in a country other than an ACP State, a Member State or one "country or territory" and sold after the exhibition for importation into the Community shall benefit on importation from the provisions of the Convention on condition that the goods meet the requirements of this Protocol entitling them to be recognized as originating in an ACP State and provided that it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these goods from an ACP State to the country in which the exhibition is held and has exhibited them there;

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

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

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

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

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

Article 18

1. When a certificate is issued within the meaning of Article 7 (2) of this Protocol after the goods to which it relates have actually been exported, the exporter must in the application referred to in Article 7 (3) of this Protocol:

--indicate the place and date of exportation of the goods to which the certificate relates;

--certify that no movement certificate EUR. I was issued at the time of exportation of the goods in question, and state the reasons.

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

Certificates issued retrospectively must be endorsed with one of the following phrases: "NACHTRAGLICH AUSGESTELLT", "DELIVRE A POSTERIORI", "RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI", "ISSUED RETROSPECTIVELY", "UDSTEDT EFTERF0LGENDE".

Article 19

In the event of the 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. The duplicate issued in this way must be endorsed with one of the following words: " DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE".

Article 20

1. When paragraphs 2, 3 and 4 of Article I are applied, for the issue of a movement certificate EUR. 1, the competent customs office in the ACP State requested to issue the certificate for products in the manufacture of which products coming from other ACP States, the Community or "countries or territories" are used, shall take into consideration the declaration, of which a specimen is given in Annex VII, given by the exporter in the State, country or territory from which it came, either on the commercial invoice applicable to these products, or on a supporting document to that invoice.

2. The submission of the information certificate, issued under the conditions set out in Article 21 and of which a specimen is given in Annex VIII, may however be requested of the exporter by the customs of rice either for checking the authenticity and accuracy of information given on the declaration provided for in paragraph 1, or for obtaining additional information. Article 21

The information certificate concerning the products taken into use shall be issued at thefice concerned, request of the exporter of these products, either in the                    circumstances envisaged in Article 20 (2), or at the initiative of this exporter, by the competent customs office in the State, country or territory from which these goods were exported. It shall be made out in duplicate. One copy shall be given to the exporter who has requested it, who shall send it either to the exporter of the final products or to the customs of office where the issue of the movement certificate EUR.1 for these products has been requested. The second copy shall be preserved by the of which has issued it for at least three years.         Article 22

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

Article 23

In order to ensure the proper application of this Title, the Member States, the "countries and territories" and the ACP States shall assist each other, through their respective customs administrations, in checking the authenticity of movement certificates EUR.1 and the accuracy of the information concerning the actual origin of the products concerned and the declarations by exporters on forms EUR. 2 and the authenticity and accuracy of the information certificates envisaged in Article 20.

Article 24

Penalties shall be imposed on any person who draws up or causes to be drawn up either a form EUR. 2 or a document which contains incorrect particulars for the purpose of obtaining a movement certificate EUR.1 enabling goods to be accepted as eligible for preferential treatment.

Article 25

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

2. For the purpose of implementing the paragraph 1, the customs authorities of the importing State shall return the movement certif icate EUR.1 or Part 2 of form EUR. 2, or a photocopy thereof, to the customs authorities of the exporting State, giving, where appropriate, the reasons of form or substance for an inquiry. The invoice. if it has been submitted, or a copy thereof shall be attached to Part 2 of form EUR. 2 and the customs authorities shall forward any information that has been obtained suggesting that the particulars given on the said certificate or the said form are inaccurate.

If the customs authorities of the importing State decide to suspend execution of the Convention while awaiting the results of the verification, they shall offer to release the goods to the importer subject to any precautionnary measures judged necessary.

3. The customs authorities of the importing State shall be informed of the results of the verification within 3 months. These results must be such as to make it possible to determine whether the disputed movement certificate EUR.1 or form EUR. 2 applies to the goods actually exported, and whether these goods can, in fact, qualify for the application of the preferential arrangements.

When such disputes cannot be settled between the customs authorities of the importing State and those of the exporting State, or when they raise a question as to the interpretation of this protocol, they shall be submitted to the Customs Co-operation Committee provided for in Article 28.

In all cases the settlement of disputes between the importer and the customs authorities of the importing State shall be under the le gislation of the said State.
 Article 26

The subsequent verification of the information certificate referred to in Article 20 shall be carried out in the circumstances envisaged in Article 25 following a similar procedure to that envisaged in the Article.

Article 27

The Council of Ministers shall examine annually the application of the provisions of this Protocol and their economic effects with . view to making any necessary changes. This examination may b carried out at more frequent intervals at the request either of the Community or the ACP States, notably when the development of existing industries or the creation of new industries necessitates derogations from this Protocol. In those cases, the ACP States con cerned shall notify the Community of the particulars of the case and the reasons justifying the need for such derogation.

The Council of Ministers, on the basis of a report by the Commit tee referred to in Article 28, shall, immediately after, arrange for the examination of the application(s) and take every step to ensure the a decision is reached as early as possible, at any rate not later the, six months after receipt of the application(s).
Article 28

1. A Customs Co-operation Committee is set up, charged wit, carrying out administrative co-operation with a view to the correct and uniform application of this Protocol and with carrying out any other task in the customs field which may be entrusted to it, notably in preparing the decisions of the Council of Ministers for the implementation of Article 27.

2. The Committee shall be composed on the one hand of the customs experts of the Member States and of officials the departments of the Commission of the European Communities who are responsible for customs questions, and on the other hand of customs experts representing the ACP States, and/or officials of regional groupings of the ACP States who are responsible for customs questions.

Article 29

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

Article 30

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

Article 31

1. For goods which conform to Title I and which, at the time of the entry into force of the Convention are either being transported or being held in the Community or in an offcials of ACP State in temporary storage, in bonded warehouses or in free zones, the proof of originating status within the meaning of this Protocol is given by the submission, within four months of that date, to the customs authorities of the importing State of:

(a) a movement certificate EUR. l issued retrospectively by the customs authorities of the exporting State, or

(b) a certificate of origin issued by the competent authorities in that State, or

(c) a movement certificate of the model previously used in the context of preferential trade between, on the one hand, the Community and the African and Malagasy States or the Republic of Tanzania the Republic of Uganda and the Republic of Kenya, on the other hand, or

(d) for goods destined for importation into Ireland or the United Kingdom of Great Britain and Northern Ireland, a certificate of the type previously used in the context of Commonwealth preferences.

2. The movement certificates mentioned in paragraph 1 (c) may continue to be used, under the conditions laid down in this Protocol, until 31 December 1975.

3. Until 1 July 1977, Article 1(3) and (4) shall not be applicable in respect of products obtained in one or more ACP States from:

--products of one or more Member States of the Community as originally Constituted and exported to one or more new Member States; or

--products of one or more new Member States and exported to one or more original Member States of the Community as originally constituted;

where the products referred to in the two above indents have been the subject only of working or processing within the meaning of Article 3 (3).

  ANNEX  I 

 EXPLANATORY NOTES

Note 1--Articles 1and 2

The terms "one or more ACP States", "theCommunity,'and' countries and territories" shall also cover their territorial waters.

Vessels operating on the high seas, including factory ships, on which the fish caught is worked or processed shall be considered as part of the territory of the ACP States, the Community or the Counties and territories', to which they belong provided that they satisfy the conditions set out in Explanatory Note 6.

Note 2--Article 1(1) (b), (3) and (4)

In order to determine whether goods originate in one or more of the ACP States, the Community or in "countries and territories" it shall not be necessary to establish whether the power and fuel, plant and equipment, and machines and tools used to obtain such goods originate in third countries or not.

Note 3--Article 1

Where a percentage rule is applied in determining originating status of a product obtained in an ACP State, the value added by the working or processing referred to in Article 1 shall correspond to the ex-works price of the product obtained less the customs value of third products imported into the Community, the ACP States or the "countries and territories"

Note 4--Article 3 (1) and (2) and Article 4

The percentage rule constitutes, where the product obtained appears in List A, a criterion additional to that of change of tariff heading for any non originating product used.

Note 5--Article 1

Packing shall be considered as forming a whole with the goods contained therein. This provision, however, shall not apply to packing which is not of the normal type for the article packed and which has intrinsic utilization value and is of a durable nature, apart from its function as packing.

Note 6

The term "their vessels" shall apply only to vessels:
--which are registered or recorded in a Member State or an ACP State;
--which sail under the nag of a Member State or an ACP State;
--which are owned to an extent of at least 50% by nationals of States party to the Convention or by a company with its head office in one of these countries, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of such board, are nationals of States party to the Convention and of which, in addition in the case of partnerships or limited companies, at least half the capital belongs to States party to the Convention or to public bodies or nationals of such States;
--of which at least 50% of the crew, captain and officers included, are nationals of States party to the Convention.

Note 7--Article 4 

" Ex-works price" shall mean the price paid to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all the products used in manufacture.
"Customs value" shall be understood as meaning the customs value laid down in the Convention concerning the Valuation of Goods for Customs Purposes signed in Brussels on 15 December 1950.

Note 8--Article 23 

The authorities consulted shall furnish any information concerning the conditions under which the product has been made, indicating especially the conditions in which the rules of origin have been respected in the various ACP States, Member States or "countries and territories" concerned.

Note 9--Article 1 (3) 

Within the meaning of this Protocol "countries and territories" shall mean the countries and territories referred to in Part four of the Treaty establishing the European Economic Community and in Article 24 of the Act of Accession.
 
 
ANNEX II

LIST A

List of working or processing operations which result in a change of tariff heading

without conferring the status of "originating" products on the products undergoing such operations