Regulation (EEC) No 2842/72 of the Council of 19 December 1972 concluding an Agreement between the European Economic Community and the Republic of Iceland and adopting provisions for its implementation

The Agreement between the European Economic Community and the Republic of Iceland, the Annexes and Protocols thereto, and the Declarations annexed to the Final Act are hereby concluded, adopted and confirmed on behalf of the Community. The texts of the Agreement and of the Final Act are annexed to this Regulation.

Pursuant to Article 37 of the Agreement, the President of the Council of the European Communities shall give notification that the procedures necessary for the entry into force of the Agreement have been completed on the part of the Community.

Within the Joint Committee provided in Article 30 of the Agreement, the Community shall be represented by the Commission, assisted by the representatives of the Member States.

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

The aim of this Agreement is: (a) to promote through the expansion of reciprocal trade the harmonious development of economic relations between the European Economic Community and the Republic of Iceland and thus to foster in the Community and in Iceland the advance of economic activity, the improvement of living and employment conditions, and increased productivity and financial stability, (b) to provide fair conditions of competition for trade between the Contracting Parties, (c) to contribute in this way, by the removal of barriers to trade, to the harmonious development and expansion of world trade.

The Agreement shall apply to products originating in the Community or Iceland: (i) which fall within Chapters 25 to 99 of the Brussels Nomenclature, excluding the products listed in Annex I; (ii) which are specified in Protocols Nos 2 and 6, with due regard to the arrangements provided for in those Protocols.

1 No new customs duty on imports shall be introduced in trade between the Community and Iceland.

2 The Community as originally constituted and Ireland shall progressively abolish customs duties on imports in accordance with the following timetable: (a) on 1 April 1973 each duty shall be reduced to 80 % of the basic duty; (b) four further reductions of 20 % each shall be made on: 1 January 1974, 1 January 1975, 1 January 1976, 1 July 1977.

3 The basic duty to which the successive reductions provided for in this Article and in Protocol No 1 are to be applied shall, for each product, be the duty actually applied on 1 January 1972. If, after 1 January 1972, any tariff reductions resulting from the tariff agreements concluded as a result of the Trade Conference held in Geneva from 1964 to 1967 become applicable, such reduced duties shall replace the basic duties referred to in the previous subparagraph.

4 The reduced duties calculated in accordance with this Article and Protocol No 1 shall be applied rounded to the first decimal place. Subject to the application by the Community of Article 39 (5) of the ‘Act concerning the Conditions of Accession and the Adjustments to the Treaties’ drawn up and adopted within the Conference between the European Communities and the Kingdom of Denmark, Ireland, the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland, as regards the specific duties or the specific part of the mixed duties in the Irish Customs Tariff, this Article and Protocol No 1 shall be applied, with rounding to the fourth decimal place.

1 On the dates indicated Iceland shall reduce customs duties on imports from the Community as originally constituted and from Ireland to the rates of the various basic duties applicable on 1 March 1970 specified below. Basic duties2451012152025303540506065707580901001 April 19732447811141821253035404550555565701 January 1974033679121518212430354040455055601 January 1975033567101315172025303035354045501 January 197602245681012141620242530303035401 January 1977022344679101215182021222525301 January 19780002234567810121314151618201 January 1979000222223345667789101 January 19800000000000000000000

2 After 1 January 1974 Iceland shall continue to reduce customs duties in respect of Denmark, Norway and the United Kingdom in accordance with the timetable shown in paragraph 1.

1 The provisions concerning the progressive abolition of customs duties on imports shall also apply to customs duties of a fiscal nature. The Contracting Parties may replace a customs duty of a fiscal nature or the fiscal element of a customs duty by an internal tax.

2 Iceland may temporarily retain, with due regard to the conditions of Article 19, customs duties of a fiscal nature on the products specified in Annex II. When production is started in Iceland of a product of like kind to one of those listed in Annex II, the duty to which the latter product is subject must be reduced to the level which would have been reached if that duty had been reduced in accordance with the timetable contained in Article 4 (1) since the entry into force of the Agreement. If in respect of third countries a customs duty lower than the duty of a fiscal nature is introduced, the tariff reductions shall be made on the basis of the former duty. Subsequent reductions shall be made in accordance with the timetable laid down in Article 4 (1).

3 Denmark, Ireland, Norway and the United Kingdom may retain until 1 January 1976 a customs duty of a fiscal nature or the fiscal element of a customs duty upon implementation of Article 38 of the ‘Act concerning the Conditions of Accession and the Adjustments to the Treaties’ drawn up and adopted within the Conference between the European Communities and the Kingdom of Denmark, Ireland, the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland.

1 No new charge having an effect equivalent to a customs duty on imports shall be introduced in trade between the Community and Iceland.

2 Charges having an effect equivalent to customs duties on imports introduced on or after 1 January 1972 in trade between the Community and Iceland shall be abolished upon the entry into force of the Agreement. Any charge having an effect equivalent to a customs duty on imports, the rate of which on 31 December 1972 is higher than that actually applied on 1 January 1972, shall be reduced to the latter rate upon the entry into force of the Agreement.

3 Charges having an effect equivalent to customs duties on imports shall be progressively abolished in accordance with the following timetable: (a) by 1 January 1974 at the latest each charge shall be reduced to 60 % of the rate applied on 1 January 1972; (b) three further reductions of 20 % each shall be made on: 1 January 1975, 1 January 1976, 1 July 1977.

1 No customs duty on exports or charge having equivalent effect shall be introduced in trade between the Community and Iceland. Customs duties on exports and charges having equivalent effect shall be abolished not later than 1 January 1974.

2 Iceland may retain the system of export levy on fish products applicable on 1 January 1972, which is set out in Annex III. Any changes must not alter the character or aims of the system. The Joint Committee shall be notified beforehand of any changes.

Protocol No 1 lays down the tariff treatment and arrangements applicable to certain products.

Protocol No 2 lays down the tariff treatment and arrangements applicable to certain goods obtained by processing agricultural products.

1 In the event of specific rules being established as a result of the implementation of its agricultural policy or of any alteration of the current rules the Contracting Party in question may adapt the arrangements resulting from this Agreement in respect of the products which are the subject of those rules or alterations.

2 In such cases the Contracting Party in question shall take due account of the interests of the other Contracting Party. To this end the Contracting Parties may consult each other within the Joint Committee provided for in Article 30.

Protocol No 3 lays down the rules of origin.

A Contracting Party which is considering the reduction of the effective level of its duties or charges having equivalent effect applicable to third countries benefiting from most-favoured-nation treatment, or which is considering the suspension of their application, shall, as far as may be practicable, notify the Joint Committee not less than thirty days before such reduction or suspension comes into effect. It shall take note of any representations by the other Contracting Party regarding any distortions which might result therefrom.

1 No new quantitative restriction on imports or measures having equivalent effect shall be introduced in trade between the Community and Iceland.

2 The Community shall abolish quantitative restrictions on imports on 1 January 1973 and any measures having an effect equivalent to quantitative restrictions on imports not later than 1 January 1975. Iceland shall abolish quantitative restrictions on imports and any measures having an effect equivalent to quantitative restrictions on imports not later than 1 January 1975.

1 The Community reserves the right to modify the arrangements applicable to the petroleum products falling within headings Nos 27.10, 27.11, 27.12, ex 27.13 (paraffin wax, micro-crystalline wax, or bituminous shale and other mineral waxes) and 27.14 of the Brussels Nomenclature upon adoption of a common definition of origin for petroleum products, upon adoption of decisions under the common commercial policy for the products in question or upon establishment of a common energy policy. In this event the Community shall take due account of the interests of Iceland; to this end it shall inform the Joint Committee, which shall meet under the conditions set out in Article 32.

2 Iceland reserves the right to take similar action should it be faced with like situations.

3 Subject to paragraphs 1 and 2, the Agreement shall not prejudice the non-tariff rules applied to imports of petroleum products.

1 The Contracting Parties declare their readiness to foster, so far as their agricultural policies allow, the harmonious development of trade in agricultural products to which the Agreement does not apply.

2 The Contracting Parties shall apply their rules in veterinary, health and plant health matters in a non-discriminatory fashion and shall not introduce any new measures that have the effect of unduly obstructing trade.

3 The Contracting Parties shall examine, under the conditions set out in Article 33, any difficulties that might arise in their trade in agricultural products and shall endeavour to seek appropriate solutions.

From 1 July 1977 products originating in Iceland may not enjoy more favourable treatment when imported into the Community than that applied by the Member States of the Community between themselves.

Protocol No 6 lays down the special provisions applicable to imports of certain fish products into the Community.

The Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in this Agreement, in particular the provisions concerning rules of origin.

The Contracting Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Contracting Party and like products originating in the territory of the other Contracting Party. Products exported to the territory of one of the Contracting Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them.

Payments relating to trade in goods and the transfer of such payments to the Member State of the Community in which the creditor is resident or to Iceland shall be free from any restrictions.

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

Nothing in the Agreement shall prevent a Contracting Party from taking any measures: (a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests; (b) which relate to trade in arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes; (c) which it considers essential to its own security in time of war or serious international tension.

1 The Contracting Parties shall refrain from any measure likely to jeopardize the fulfilment of the objectives of the Agreement.

2 They shall take any general or specific measures required to fulfil their obligations under the Agreement. If either Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under the Agreement, it may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28.

1 The following are incompatible with the proper functioning of the Agreement in so far as they may affect trade between the Community and Iceland: (i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition as regards the production of or trade in goods; (ii) abuse by one or more undertakings of a dominant position in the territories of the Contracing Parties as a whole or in a substantial part thereof; (iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

2 Should a Contracting Party consider that a given practice is incompatible with this Article, it may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28.

Where an increase in imports of a given product is or is likely to be seriously detrimental to any production activity carried on in the territory of one of the Contracting Parties and where this increase is due to: (i) the partial or total reduction in the importing Contracting Party, as provided for in the Agreement, of customs duties and charges having equivalent effect levied on the product in question; and (ii) the fact that the duties or charges having equivalent effect levied by the exporting Contracting Party on imports of raw materials or intermediate products used in the manufacture of the product in question are significantly lower than the corresponding duties or charges levied by the importing Contracting Party; the Contracting Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28.

If one of the Contracting Parties finds that dumping is taking place in trade with the other Contracting Party, it may take appropriate measures against this practice in accordance with the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade, under the conditions and in accordance with the procedures laid down in Article 28.

If serious disturbances arise in any sector of the economy or if difficulties arise which could bring about serious deterioration in the economic situation of a region, the Contracting Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 28.

1 In the event of a Contracting Party subjecting imports of products liable to give rise to the difficulties referred to in Articles 25 and 27 to an administrative procedure, the purpose of which is to provide rapid information on the trend of trade flows, it shall inform the other Contracting Party.

2 In the cases specified in Articles 23 to 27, before taking the measures provided for therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Contracting Party in question shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties. In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

3 For the implementation of paragraph 2, the following provisions shall apply: (a) As regards Article 24, either Contracting Party may refer the matter to the Joint Committee if it considers that a given practice is incompatible with the proper functioning of the Agreement within the meaning of Article 24 (1). The Contracting Parties shall provide the Joint Committee with all relevant information and shall give it the assistance it requires in order to examine the case and, where appropriate, to eliminate the practice objected to. If the Contracting Party in question fails to put an end to the practice objected to within the period fixed by the Joint Committee, or in the absence of agreement in the Joint Committee within three months of the matter being referred to it, the Contracting Party concerned may adopt any safeguard measures it considers necessary to deal with the serious difficulties resulting from the practices in question; in particular it may withdraw tariff concessions. (b) As regards Article 25, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Joint Committee which may take any decision needed to put an end to such difficulties. If the Joint Committee or the exporting Contracting Party has not taken a decision putting an end to the difficulties within thirty days of the matter being referred, the importing Contracting Party is authorized to levy a compensatory charge on the product imported. The compensatory charge shall be calculated according to the incidence on the value of the goods in question of the tariff disparities in respect of the raw materials or intermediate products incorporated therein. (c) As regards Article 26, consultation in the Joint Committee shall take place before the Contracting Party concerned takes the appropriate measures. (d) Where exceptional circumstances requiring immediate action make prior examination impossible, the Contracting Party concerned may, in the situations specified in Articles 25, 26 and 27 and also in the case of export aids having a direct and immediate incidence on trade, apply forthwith the precautionary measures strictly necessary to remedy the situation.

Where one or more Member States of the Community or Iceland is in difficulties or is seriously threatened with difficulties as regards its balance of payments, the Contracting Party concerned may take the necessary safeguard measures. It shall inform the other Contracting Party forthwith.

1 A Joint Committee is hereby established which shall be responsible for the administration of the Agreement and shall ensure its proper implementation. For this purpose, it shall make recommendations and take decisions in the cases provided for in the Agreement. These decisions shall be put into effect by the Contracting Parties in accordance with their own rules.

2 For the purpose of the proper implementation of the Agreement the Contracting Parties shall exchange information and, at the request of either Party, shall hold consultations within the Joint Committee.

3 The Joint Committee shall adopt its own rules of procedure.

1 The Joint Committee shall consist of representatives of the Community, on the one hand, and of representatives of Iceland, on the other.

2 The Joint Committee shall act by mutual agreement.

1 Each Contracting Party shall preside in turn over the Joint Committee, in accordance with the arrangements to be laid down in its rules of procedure.

2 The Chairman shall convene meetings of the Joint Committee at least once a year in order to review the general functioning of the Agreement. The Joint Committee shall, in addition, meet whenever special circumstances so require, at the request of either Contracting Party, in accordance with the conditions to be laid down in its rules of procedure.

3 The Joint Committee may decide to set up any working party that can assist it in carrying out its duties.

1 Where a Contracting Party considers that it would be useful in the common interest of both Contracting Parties to develop the relations established by the Agreement by extending them to fields not covered thereby, it shall submit a reasoned request to the other Contracting Party. The Contracting Parties may instruct the Joint Commitee to examine this request and, where appropriate, to make recommendations to them, particularly with a view to opening negotiations.

2 The agreements resulting from the negotiations referred to in paragraph 1 will be subject to ratification or approval by the Contracting Parties in accordance with their own procedures.

The Annexes and Protocols to the Agreement shall form an integral part thereof.

Either Contracting Party may denounce the Agreement by notifying the other Contracting Party. The Agreement shall cease to be in force twelve months after the date of such notification.

The Agreement shall apply, on the one hand, to the territories to which the Treaty establishing the European Economic Community applies upon the terms laid down in that Treaty and, on the other, to the territory of the Republic of Iceland.

This Agreement is drawn up in duplicate in the Danish, Dutch, English, French, German, Icelandic, Italian and Norwegian languages, each of these texts being equally authentic. This Agreement will be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 January 1973, provided that the Contracting Parties have notified each other before that date that the procedures necessary to this end have been completed. After this date this Agreement shall enter into force on the first day of the second month following such notification. The final date for such notification shall be 30 November 1973. The provisions applicable on 1 April 1973 shall be applied upon the entry into force of this Agreement if it enters into force after that date.

A levy shall be applied to exports of Icelandic fish products specified in this Law. Fish caught by fishing vessels registered in Iceland shall be considered as Icelandic products even if such fish is caught outside Icelandic fishing limits and not processed ashore.

In accordance with this Law, the export levy on fish products shall be applied as follows: 1. A levy of 2300 Icelandic Crowns per ton shall be applied to exports of frozen fish fillets, frozen fish roes, salted whitefish, salted fish fillets, belly of salted cod, salted fish roes not elsewhere specified, salted fish bits, salted and frozen fish tongues, stockfish, dried fish heads, shellfish and preserved fish products in hermetic containers. Should the levy applied under this Article exceed 4·5 % of the f.o.b. value of the fish products in question, the Ministry of Fisheries may decide to abolish the part of the levy which is in excess thereof. 2. A levy of 3 % of the f.o.b. value shall be applied to exports of whole frozen fish, frozen fish waste, frozen Norway lobster, frozen shrimp, frozen capelin, capelin meal, capelin oil and hydrogenated cils and fats from fish or marine mammals. 3. A levy of 5 % of the f.o.b. value shall be applied to exports of whale products other than preserved in hermetic containers. 4. A levy of 6 % of the f.o.b. value shall be applied to exports of fish meal, redfish meal, Norway lobster meal, shrimp meal, liver meal, codliver oil, redfish oil, whole frozen herring, frozen herring fillets, salted herring, salted herring fillets, salted lumpfish roes and other fish products not specified in this Article. 500 Icelandic Crowns per 100 kg of contents may be deducted from the f.o.b. value of salted herring and salted lumpfish roes to cover packing costs. 5. A levy of 7 % of the f.o.b. value shall be applied to exports of fresh and chilled fish. The Ministry of Fisheries may, however, decide that they levy on fresh or chilled herring shall be equal to that which would have been applicable had the herring been processed in Iceland by the same method as it to be used abroad (see points 4 and 6 of this Article). 6. A levy of 8 % of the f.o.b. value shall be applied to exports of herring meal, herring solubles and herring oil. 7. Seal products are not subject to the export levy. For the purposes of point 1, uncooked preserved products in hermetic containers shall mean uncooked preserved products ready for consumption in hermetic containers of 10 kg net or less. Fully processed uncooked products in larger containers shall also be regarded as uncooked preserved products in hermetic containers if the exporter supplies proof that the value of the unprocessed product is less than one-third of the export value of the exported products. Where Icelandic vessels sell, in foreign ports, fresh or processed fish products caught by their own or other vessels and subject to this levy, the said levy shall be applied on the gross value of such sales, less customs duties and other unloading and sales charges, in accordance with rules issued by the Ministry of Fisheries.

The Treasury shall collect the export levy in accordance with the provisions of Article 2, and the receipts shall be distributed as follows: 1. for payment of insurance premiums for fishing vessels in accordance with rules issued by the Ministry of Fisheries 82·0 %2. to the Fisheries Loan Fund of Iceland11·4 %3. to the Fisheries Fund3·1 % 4. to the building of vessels for ocean and fishery research 1·8 % 5. for the building of Fisheries Research Institutes 0·7 % 6. to the Federation of Icelandic Fishing Vessels Owners 0·5 % 7. to seamen's unions in accordance with rules issued by the Ministry of Fisheries 0·5 % Payment of the insurance premiums for fishing vessels referred to in item 1 may be subject to the condition that the insurance company concerned be a member of the Underwriters' Reinsurance Union and be required to apply certain rules concerning calculation of premium rates, insurance terms and hull values. Whalers may be exempted from these conditions and are then entitled to reimbursement of their contribution to the Fishing Vessels' Insurance Fund instead of the insurance premiums.

The levy provided for in Article 2, points 2, 3 and 4, shall be applied to the selling price of the products, including packing, f.o.b. vessel in the first port of landing. The value of products sold c.i.f. or under other terms shall be adjusted to the f.o.b. value in accordance with rules issued by the Ministry of Trade. Where unsold products are exported the export levy provided for in Article 2, points 2, 3 and 4, shall be calculated on the basis of the minimum export price stipulated in the export licence. If the exporter supplies proof, within 6 months of the date shown on the bill of lading, that the price of an unsold fish product, as determined by the competent authority, is higher than the actual selling price, the Ministry of Finance shall refund the difference, subject to confirmation by the Ministry of Trade that sale at the lower price has been approved. The levy provided for in Article 2, point 1, shall be applied to the net weight of the sold product, which must be indicated in the export documents.

The export levy falls due as soon as a ship has been cleared for sailing or before landing, should customs clearance not be required. The Ministry of Fisheries may, however, authorize the shipper to pay the dues when he receives the foreign currency, provided that the transaction is carried out through an Icelandic bank and that he gives the Customs Authorities a promissory note, representing the exchange value of the sum due.

Shippers of products covered by the provisions of this Law shall submit to the competent authority before a ship is cleared for sailing or before landing a duplicate or a certified copy of the bill of lading or other shipping documents, an export declaration, an invoice and, if required, a certificate of inspection, together with an export licence. If no export document has been issued, the shipper shall make a declaration regarding the quantity being shipped. The provisions of this Article concerning the shipper shall also apply to the master of the ship, in the event of absence of or negligence by the shipper, and to the ship-brokers. The levy shall be applied on the basis of the information contained in the documents mentioned in this Article.

The ship and its cargo shall constitute surety for payment of the export levy.

The competent authorities shall draw up a statement of export levies collected under the provisions of this Law in accordance with the instructions given by the Ministry of Finance and the rules relating to public accounts.

Any infringement of this Law is liable to a fine unless another law provides for a stricter penalty. Moreover, any shipper, ship's master or ship-broker found guilty of giving incorrect information about a ship's cargo shall pay triple the export levy in respect of which the fraud was attempted. The fines shall be paid to the Treasury. Should the competent authorities suspect that the documents referred to in Article 6 are incorrect, they shall inspect the ship's cargo before shipment or landing, or shall by some other means obtain the documents necessary for this purpose.

Infringements of this Law shall be tried under the provisions of the law governing criminal procedure.

The Government shall be authorized to apply levies on the net weight of the products specified in Article 2, point 1, of this Law in accordance with Article 9 of Law No 77 of 28 April 1962 on the Fisheries Catch Equalization Fund and Article 9 of Act No 42 of 9 June 1960 on Fresh Fish Inspection.

The Ministry of Fisheries may issue a regulation laying down further directives concerning the application of this law.

1 Customs duties on imports into the Community as originally constituted of products falling within Chapters 48 or 49 of the Common Customs Tariff excluding heading No 48.09 (building board of wood pulp or of vegetable fibre, whether or not bonded with natural or artificial resins or with similar binders) shall be progressively abolished in accordance with the following timetable: Timetable Products falling within headings or sub-headings Nos 48.01 C II, 48.01 E, 48.07 B, 48.13 or 48.15 B Rates of duty applicable—percentage Other products Percentage of basic duties applicable 1 April 197311·5951 January 197411901 January 197510·5851 January 197610801 July 19778651 January 19796501 January 19806501 January 19814351 January 19824351 January 19832201 January 198400

2 Customs duties on imports into Ireland of products specified in paragraph 1 shall be progressively abolished in accordance with the following timetable: TimetablePercentage of basic duties applicable1 April 1973851 January 1974701 January 1975551 January 1976401 July 1977201 January 1979151 January 1980151 January 1981101 January 1982101 January 198351 January 19840

3 Notwithstanding Article 3 of the Agreement, Denmark, Norway and the United Kingdom shall apply the following customs duties to imports of products specified in paragraph 1 which originate in Iceland: Timetable Products falling within headings or sub-headings Nos 48.01 C II, 48.01 E, 48.07 B, 48.13 or 48.15 B Rates of duty applicable—percentage Other products Percentage of Common Customs Tariff duty applicable 1 April 1973001 January 19743251 January 19754·537·51 January 19766501 July 19778651 January 19796501 January 19806501 January 19814351 January 19824351 January 19832201 January 198400

4 During the period from 1 January 1974 to 31 December 1983, Denmark, Norway and the United Kingdom shall be entitled to open each year, for imports of products originating in Iceland, zero-duty tariff quotas the amounts of which, shown in Annex A for 1974, shall be equal to the average amount of imports between 1968 and 1971 raised cumulatively by four increases of 5 %; after 1 January 1975 the amount of these tariff quotas shall be raised annually by 5 %.

5 The expression ‘the Community as originally constituted’ means the Kingdom of Belgium, the Federal Republic of Germany, the French Republic, the Italian Republic, the Grand Duchy of Luxembourg and the Kingdom of the Netherlands.

1 Customs duties on imports into the Community as originally constituted and into Ireland of the products specified in paragraph 2 shall be progressively reduced to the follwing levels in accordance with the following timetable: TimetablePercentage of basic duties applicable1 April 1973951 January 1974901 January 1975851 January 1976751 January 1977601 January 197840with a maximum of 3 % ad valorem (except subheadings Nos 78.01 A II and 79.01 A)1 January 1979201 January 19800 For tariff sub-headings Nos 78.01 A II and 79.01 A, listed in the table given in paragraph 2, the tariff reductions shall be made, as regards the Community as originally constituted and notwithstanding Article 5 (3) of the Agreement, rounded to the second decimal place.

2 The products referred to in paragraph 1 are the following: Common Customs Tariff heading NoDescriptionex 73.02Ferro-alloys, excluding ferro-nickel and products covered by the ECSC Treaty76.01 Unwrought aluminium; aluminium waste and scrap: A. Unwrought 78.01 Unwrought lead (including argentiferous lead); lead waste and scrap A. Unwrought II. Other 79.01 Unwrought zinc; zinc waste and scrap: A. Unwrought 81.01Tungsten (Wolfram), unwrought or wrought, and articles thereof81.02Molybdenum, unwrought or wrought, and articles thereof81.03Tantalum, unwrought or wrought, and articles thereof81.04 Other base metals, unwrought or wrought, and articles thereof; cermets, unwrought or wrought, and articles thereof: B. Cadmium C. Cobalt II. Wrought D. Chromium E. Germanium F. Hafnium (celtium) G. Manganese H. Niobium (columbium) IJ. Antimony K. Titanium L. Vanadium M. Uranium depleted in U 235 O. Zirconium P. Rhenium Q. Gallium; indium; thallium R. Cermets

Imports to which the tariff treatment provided for in Articles 1 and 2 applies, except unwrought lead other than bullion lead (falling within subheading No 78.01 A II of the Common Customs Tariff), shall be subjected to annual indicative ceilings above which the customs duties applicable in respect of third countries may be reintroduced in accordance with the following provisions: (a) Taking into account the Community's right to suspend application of ceilings for certain products, the ceilings fixed for 1973 are shown in Annex B. These ceilings are calculated on the assumption that the Community as originally constituted and Ireland shall make the first tariff reduction on 1 April 1973. For 1974 the level of the ceilings shall correspond to that applied in 1973 readjusted on an annual basis for the Community and raised by 5 %. From 1 January 1975 the level of the ceilings shall be raised annually by 5 %. For products covered by this Protocol but not included in Annex B, the Community reserves the right to introduce ceilings of which the level will be equal to the average amount of imports into the Community over the last four years for which statistics are available, increased by 5 %; for the following years, the levels of these ceilings shall be raised annually by 5 %. (b) Should, for two successive years, imports of a product subject to a ceiling be less than 90 % of the level fixed, the Community shall suspend the application of this ceiling. (c) In the event of short-term economic difficulties, the Community reserves the right, after consultation within the Joint Committee, to maintain for a year the level fixed for the preceding year. (d) On 1 December each year the Community shall notify the Joint Committee of the list of products subject to ceilings in the following year and of the levels of the ceilings. (e) Imports under the tariff quotas opened in accordance with Article 1 (4) and (5) shall also be set off against the ceiling levels fixed for the same products. (f) Notwithstanding Article 3 of the Agreement and Articles 1 and 2 of this Protocol, when a ceiling fixed for imports of a product covered by this Protocol is reached, Common Customs Tariff duties on imports of the product in question may be reimposed until the end of the calendar year. In this event, prior to 1 July 1977: (i) Denmark, Norway and the United Kingdom shall reimpose customs duties as follows: YearsPercentage of Common Customs Tariff duties applicable19730197440197560197680 (ii) Ireland shall reimpose customs duties applicable to third countries. The customs duties specified in Articles 1 and 2 of this Protocol shall be reintroduced on 1 January of the following year. (g) After 1 July 1977 the Contracting Parties shall examine within the Joint Committee the possibility of revising the percentage by which the levels of ceilings are raised, having regard to the trend of consumption and imports in the Community and to experience gained in applying this Article. (h) The ceilings shall be abolished at the end of the tariff-dismantling periods provided for in Articles 1 and 2 of this Protocol.

In order to take account of differences in the cost of the agricultural products incorporated in the goods specified in the tables annexed to this Protocol, the Agreement does not preclude: (i) the levying, upon import, of a variable component or fixed amount, or the application of internal price compensation measures; (ii) the application of measures adopted upon export.

1 For the products specified in the tables annexed to this Protocol the basic duties shall be: (a) for the Community as originally constituted: the duties actually applied on 1 January 1972; (b) for Denmark, Ireland, Norway and the United Kingdom: (i) in respect of products covered by Regulation (EEC) No 1059/69: for Ireland, on the one hand, for Denmark, Norway and the United Kingdom, on the other hand, in respect of products not covered by the Convention establishing the European Free Trade Association: the customs duties resulting from Article 47 of the ‘Act concerning the Conditions of Accession and the Adjustments to the Treaties’ drawn up and adopted within the Conference between the European Communities and the Kingdom of Denmark, Ireland, the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland; the Joint Committee shall be informed of these basic duties in good time and in any case before the first reduction provided for in paragraph 2; (ii) in respect of the other products: the duties actually applied on 1 January 1972; (c) for Iceland: (i) in respect of products originating in the Community as originally constituted and in Ireland: the duties shown in Table II annexed to this Protocol; (ii) in respect of products originating in Denmark, Norway and the United Kingdom: the duties applied on 1 January 1972 in the framework of the European Free Trade Association.

2 (a) The Community shall progressively abolish the difference between the basic duties defined in paragraph 1 and the duties applicable on 1 July 1977, which are shown in the tables annexed to this Protocol, by five reductions of 20 % each according to the timetable set out in Article 3 (2) of the Agreement. However, if the duty applicable on 1 July 1977 is greater than the basic duty, the difference between these duties shall be reduced by 40% on 1 January 1974 and again reduced by 20% on each of the following dates: 1 January 1975, 1 January 1976, 1 July 1977. (b) Iceland shall progressively abolish the difference between the basic duties and the duties applicable on 1 January 1980, which are shown in the tables annexed to this Protocol, according to the timetable set out in Article 4 (1) of the Agreement.

3 Notwithstanding Article 3 (4) of the Agreement and subject to the application by the Community of Article 39 (5) of the ‘Act concerning the Conditions of Accession and the Adjustments to the Treaties’ drawn up and adopted within the Conference between the European Communities and the Kingdom of Denmark, Ireland, the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland, as regards the specific duties or the specific part of the mixed duties of the customs tariff of the United Kingdom, paragraphs 1 and 2 shall be applied, with rounding to the fourth decimal place for the products listed below: United Kingdom Customs Tariff heading NoDescription22.06Vermouths, and other wines of fresh grapes flavoured with aromatic extractsex 22.09Spirits (other than those of heading No 22.08); liqueurs and other spirituous beverages; compound alcoholic preparations (known as ‘concentrated extracts’) for the manufacture of beverages:— Spirits other than rum, arrack, tafia, gin, whisky, vodka with an ethyl alcohol content of 45·2o or less, and plum, pear or cherry brandy, containing eggs or egg yolk and/or sugar (sucrose or invert sugar)

4 For products falling within headings Nos 19.03, 22.06 and 35.01 B of the United Kingdom Customs Tariff and listed in Table I annexed to this Protocol, the United Kingdom may defer the first of the tariff reductions referred to in paragraph 2 until 1 July 1973.

5 In respect of the products in list 2 of Table II annexed to this Protocol which are subject to customs duties of a fiscal nature when imported into Iceland, Article 5 (2) of the Agreement shall apply to the element of industrial protection in such duties.

1 This Protocol shall also apply to the alcoholic beverages of subheading No 22.09 C of the Common Customs Tariff not specified in Tables I and II annexed to this Protocol. The rules governing tariff reductions applicable to these products shall be decided by the Joint Committee. When defining these rules or at a later date, the Joint Committee shall decide whether to include in this Protocol other products of Chapters 1 to 24 of the Brussels Nomenclature which are not subject to agricultural regulations in the territories of the Contracting Parties.

2 On this occasion the Joint Committee shall supplement, if necessary, Annexes II and III to Protocol No 3.

For the purpose of implementing the Agreement, and without prejudice to the provisions of Articles 2 and 3 of this Protocol, the following products shall be considered as: 1. products originating in the Community: (a) products wholly obtained in the Community; (b) products obtained in the Community in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 5. This condition shall not apply, however, to products which, within the meaning of this Protocol, originate in Iceland; 2. products originating in Iceland: (a) products wholly obtained in Iceland; (b) products obtained in Iceland 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 5. This condition shall not apply, however, to products which, within the meaning of this Protocol, originate in the Community. The products in List C shall be temporarily excluded from the scope of this Protocol.

1 Inasmuch as trade between the Community and Austria, Finland, Portugal, Sweden and Switzerland and between Iceland and the latter five countries and also between each of those five countries themselves is governed by agreements containing rules identical to those in this Protocol, the following products shall also be considered as: A. products originating in the Community: those products referred to in Article 1 (1) which, after being exported from the Community, have undergone no working or processing in any of those five countries or have not undergone sufficient working or processing there to confer on them the status of products originating in any of those countries by virtue of provisions corresponding to those of Article 1 (1) (b) or (2) (b) of this Protocol contained in the agreements referred to above, provided that: (a) only products originating in any of those five countries or in the Community or in Iceland have been used in the course of the working or processing; (b) where a percentage rule limits, in the Lists A or B referred to in Article 5, the proportion in value of non-originating products that can be incorporated under certain circumstances, the added value has been acquired in each of the countries in accordance with the percentage rules and with the other rules contained in the said lists without any possibility of cumulation from one country to another; B. products originating in Iceland: those products referred to in Article 1 (2) which, after being exported from Iceland, have undergone no working or processing in any one of these five countries or have undergone working or processing insufficient to confer on them the status of products originating in any of those countries by virtue of provisions corresponding to those of Article 1 (1) (b) or (2) (b) of this Protocol contained in the agreements referred to above, provided that: (a) only products originating in any one of those five countries or in the Community or in Iceland have been used in the course of the working or processing; (b) where a percentage rules limits, in the Lists A or B referred to in Article 5, the proportion in value of non-originating products that can be incorporated under certain circumstances, the added value has been acquired in each of the countries in accordance with the percentage rules and with the other rules contained in the said lists without any possibility of cumulation from one country to another.

2 For the purpose of implementing paragraph 1 (A) (a) and (B) (a), the fact that products other than those referred to therein are used in a proportion not exceeding in total value 5 % of the value of the products obtained and imported into Iceland or the Community does not affect the determination of origin of the latter products, provided that they would not have caused the products exported from the Community or Iceland in the first place to lose their status of products originating in the Community or in Iceland had they been incorporated there.

3 In the cases referred to in paragraph 1 (A) (b) and (B) (b) and paragraph 2, no non-originating product may be incorporated if it undergoes only the working or processing provided for in Article 5 (3).

Notwithstanding the provisions of Article 2 and provided that all the conditions laid down in that article are nevertheless fulfilled, the products obtained shall not continue to be considered as products originating in the Community or in Iceland respectively unless the value of the products worked or processed originating in the Community or in Iceland represents the highest percentage of the value of the products obtained. If this is not so, the latter products are considered as originating in the country where the added value acquired represents the highest percentage of their value.

The following shall be considered as wholly obtained either in the Community or in Iceland within the meaning of Article 1 (1) (a) and (2) (a): (a) mineral products extracted from their soil or from their seabed; (b) vegetable products harvested there; (c) live animals born and raised there; (d) products from live animals raised there; (e) products obtained by hunting or fishing conducted there; (f) products of sea fishing and other products taken from the sea by their vessels; (g) products made aboard their factory ships exclusively from products referred to in subparagraph (f); (h) used articles collected there fit only for the recovery of raw materials; (i) waste and scrap resulting from manufacturing operations conducted there; (j) goods produced there exclusively from products specified in subparagraphs (a) to (i).

1 For the purpose of implementing Article 1 (1) (b) and (2) (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, where the special provisions of that list apply; (b) working or processing specified in List B. ‘Sections’, ‘Chapters’ and ‘tariff headings’ shall mean the Sections, Chapters and tariff 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 1 (1) (b) and (2) (b), the following shall still be considered as insufficient working or processing to confer the status of orginating product, whether or not there is a change 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 consignments; (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 products or their packaging; (e) simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating either in the Community or in Iceland; (f) simple assembly of parts of articles to constitute a complete article; (g) a combination of two or more operations specified in subparagraphs (a) to (f); (h) slaughter of animals.

1 Where the Lists A and B referred to in Article 5 provide that goods obtained in the Community or in Iceland 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 determining 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. This Article also applies for the implementation of Articles 2 and 3.

2 Where Articles 2 and 3 apply, ‘added value acquired’ shall be understood as meaning the difference between the ex-works price of the goods obtained, less internal taxes refunded or refundable on exportation from the country concerned or from the Community and the customs value of all the products imported and worked or processed in that country or in the Community.

Goods originating in Iceland or in the Community and constituting one single shipment which is not split up may be transported through territory other than that of the Community, Iceland, Austria, Finland, Portugal, Sweden or Switzerland, 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, that the goods have remained under the surveillance of the customs authorities in the country of transit or of warehousing, that they have not entered into the commerce of such countries or been delivered for home use there and have not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition.

1 Originating products within the meaning of Article 1 of this Protocol shall, on import into the Community or into Iceland, benefit from the provisions of the Agreement upon submission of an A.1S.1 movement certificate, a specimen of which is given in Annex V to this Protocol, issued by the customs authorities of Iceland or of the Member States of the Community.

2 Where Article 2 and, where appropriate, Article 3 are applied, A.W.1 movement certificates, a specimen of which is given in Annex VI to this Protocol, shall be used. They shall be issued by the customs authorities of each of the countries concerned where the goods have either been held before their re-exportation in the same state or undergone the working or processing referred to in Article 2, upon presentation of the movement certificates issued previously.

3 In order that the customs authorities may satisfy themselves as to the conditions in which the goods have been kept in the territory of each of the countries concerned in cases where they have not been placed in a bonded warehouse and are to be re-exported in the same state, the movement certificates issued earlier and presented on importation of the goods shall, at the request of the holder of the goods, be duly endorsed at the time of importation and thereafter every six months by the said authorities.

4 The customs authorities of Iceland and of the Member States of the Community shall be authorized to issue the movement certificates specified in the agreements referred to in Article 2 under the conditions laid down in those agreements provided that the goods covered by the certificates are in the territory of Iceland or of the Community. A specimen of the certificate to be used is given in Annex VI to this Protocol.

5 Where the term ‘movement certificate’ or ‘movement certificates’ is used in this Protocol and it is not specified whether the certificate or certificates concerned are of the type described in paragraph 1 or of the type described in paragraph 2, the relevant provisions shall apply equally to both types of certificate.

A movement certificate shall be issued only on application having been made in writing by the exporter, on the form prescribed for this purpose.

1 A movement certificate shall be issued by the customs authorities of the exporting State when the goods to which it relates are exported. It shall be made available to the exporter as soon as actual exportation has been effected or ensured. In exceptional circumstances a movement certificate 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. A movement certificate may be issued only where it can serve as the documentary evidence required for the purpose of implementing the preferential treatment provided for in the Agreement.

2 A movement certificate issued under the conditions laid down in Article 8 (2) or (4) must bear references to the movement certificate or certificates issued earlier upon presentation of which it is issued.

3 Applications for movement certificates and for certificates referred to in paragraph 2, upon presentation of which new certificates are issued, must be preserved for at least two years by the customs authorities of the exporting country.

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

2 A movement certificate which is submitted to the customs authorities of the importing State after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit 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.

3 Movement certificates, whether or not endorsed in the conditions laid down in Article 8 (3), shall be preserved by the customs authorities of the importing State in accordance with the rules in force in that State.

Movement certificates shall be made out on the appropriate form, specimens of which are given in Annexes V and VI to this Protocol, in one of the languages in which the Agreement is drawn up, and in accordance with the provisions of the domestic law of the exporting State. If they are handwritten, they shall be completed in ink in printscript. Each certificate shall measure 210 × 297 mm. The paper used must be white sized writing paper not containing mechanical pulp and weighing not less than 25 grammes per square metre. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye. The Member States of the Community and Iceland may reserve the right to print the certificates themselves or may have them printed by approved printers. In the latter case, each certificate must include a reference to such approval. Each certificate must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number by which it can be identified.

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

1 The Community and Iceland shall admit goods sent as small packages to private persons or forming part of travellers' personal luggage as originating products benefiting from the Agreement without requiring the production of a movement certificate, 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.

3 The unit of account (UA) has a value of 0·88867088 g of fine gold. Should the unit of account be changed, the Contracting Parties shall make contact with each other at Joint Committee level to redefine the value in terms of gold.

1 Goods sent from the Community or from Iceland for exhibition in a country other than those referred to in Article 2 and sold after the exhibition for importation into Iceland or into the Community shall benefit on importation from the provisions of the Agreement on condition that the goods meet the requirements of this Protocol entitling them to be recognized as originating in the Community or in Iceland and provided that it is shown to the satisfaction of the customs authorities that: (a) an exporter has consigned these goods from the Community or from Iceland 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 Iceland or in the Community; (c) the goods have been consigned during the exhibition or immediately thereafter to Iceland or 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 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 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign goods, and during which the goods remain under customs control.

In order to ensure the proper application of the provisions of this Title, the Member States of the Community and Iceland shall assist each other, through their respective customs administrations, in checking the authenticity and accuracy of movement certificates, including those issued under Article 8 (4). The Joint Committee shall be authorized to take any decisions necessary for the methods of administrative cooperation to be applied at the due time in the Community and in Iceland.

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

The Community and Iceland shall take any measures necessary to enable movement certificates to be submitted, in accordance with Article 13 of this Protocol, as from 1 April 1973.

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

The explanatory notes, Lists A, B and C, and the specimens of movement certificates shall form an integral part of this Protocol.

Goods which conform to the provisions of Title I and which, on 1 April 1973, are either being transported or being held in the Community or in Iceland in temporary storage, in bonded warehouses or in free zones, may be allowed to benefit from the provisions of the Agreement, subject to the submission—within four months of that date—to the customs authorities of the importing State of a movement certificate, drawn up retroactively by the competent authorities of the exporting State, and of any documents that provide supporting evidence of the conditions of transport.

The Contracting Parties undertake to introduce any measures necessary to ensure that the movement certificates which the customs authorities of the Member States of the Community and of Iceland are authorized to issue in pursuance of the agreements referred to in Article 2 are issued under the conditions laid down by those agreements. They also undertake to provide the administrative cooperation necessary for this purpose, in particular to check on the itinerary of goods traded under the agreements referred to in Article 2 and the places in which they have been held.

1 Without prejudice to Article 1 of Protocol No 2, no drawback or remission of any kind may be granted from customs duties in the Community or in Iceland in respect of products used in manufacture which do not originate in the Community, Iceland or the countries specified in Article 2 of this Protocol, as from the date on which the duty applicable to originating products of the same kind has been reduced in the Community and in Iceland to 40% of the basic duty.

2 Without prejudice to Article 1 of Protocol No 2, no drawback or remission of any kind may be granted from customs duties in Denmark, Norway or the United Kingdom in respect of products imported and used in the manufacture of goods for which a movement certificate is issued by the customs authorities of any of these three countries for the purpose of benefiting in Iceland from the tariff provisions in force in Iceland and covered by Article 3 (1) and Article 4 of the Agreement. This rule does not, however, apply where the products used are those referred to in Article 25 (1) of this Protocol.

3 Without prejudice to Article 1 of Protocol No 2, no drawback or remission of any kind may be granted from customs duties in Iceland in respect of imported products used in the manufacture of goods for which a movement certificate is issued by the customs authorities of Iceland for the purpose of benefiting in Denmark, Norway or the United Kingdom from the tariff provisions in force in these three countries and covered by Article 3 (1) and Article 4 of the Agreement. This rule does not, however, apply where the products used are those referred to in Article 25 (1) of this Protocol.

4 In this and the following articles, the term ‘customs duties’ also means charges having an effect equivalent to customs duties.

1 Movement certificates may, where appropriate, be required to indicate that the products to which they relate have acquired the status of originating products and have undergone any additional processing solely in Iceland or in Denmark, Norway, the United Kingdom or the other five countries specified in Article 2 of this. Protocol until the date from which the customs duties applicable to the said products are abolished between the Community as originally constituted and Ireland, on the one hand, and Iceland, on the other hand.

2 In other cases, they may, where appropriate, be required to indicate the added value acquired in each of the following territories: (i) the Community as originally constituted, (ii) Ireland, (iii) Denmark, Norway, the United Kingdom, (iv) Iceland (v) each of the five countries specified in Article 2 of this Protocol.

1 On importation into Iceland or into Denmark, Norway or the United Kingdom, the tariff provisions in force in Iceland or in those three countries and covered by Article 3 (1) of the Agreement may benefit only those products for which a movement certificate has been issued indicating that they have acquired the status of originating products and undergone any additional processing solely in Iceland or in the three countries referred to above or in the other five countries specified in Article 2 of this Protocol.

2 In any cases other than those referred to in paragraph 1, Iceland or the Community may adopt transitional provisions for the purpose of not levying the duties provided for in Article 3 (2) of the Agreement on the value corresponding to the value of the products originating in Iceland or in the Community which have been worked or processed to obtain other products fulfilling the conditions laid down in this Protocol and which are subsequently imported into Iceland or into the Community.

The Contracting Parties shall take any measures necessary for the conclusion of arrangements with Austria, Finland, Portugal, Sweden and Switzerland enabling this Protocol to be applied.

1 For the purpose of implementing Article 2 (1) (A) of this Protocol, any product originating in one of the five countries referred to in that Article shall be treated as a non-originating product during the period or periods in which Iceland applies the rate of duty applicable to third countries or any corresponding safeguard measure to that product in respect of the said country under the provisions governing trade between Iceland and the five countries referred to in the aforementioned Article 2.

2 For the purpose of implementing Article 2 (1) (B) of this Protocol, any product originating in one of the five countries referred to in that Article shall be treated as a non-originating product during the period or periods in which the Community applies the rate of duty applicable to third countries to that product in respect of the said country under the Agreement concluded by the Community with that country.

The Joint Committee may decide to amend the provisions of Title I, Article 5 (3), of Title II, of Title III, Articles 23, 24 and 25, and of Annexes I, II, III, V and VI to this Protocol. It shall, in particular, be authorized to take any measures necessary to adapt them to the particular requirements of specific goods or certain forms of transport.

1 As regards the products listed below and originating in Iceland: (a) no new customs duty shall be introduced in trade between the Community and Iceland, (b) Article 3 (2), (3) and (4) of the Agreement shall apply to imports into the Community as originally constituted, Ireland and the United Kingdom. The date for the first tariff reduction shall, however, be 1 July 1973 and not 1 April 1973. Common Customs Tariff heading NoDescription02.04 Other meat and edible meat offals, fresh, chilled, or frozen: C. Other: ex I. Whale and seal meat; frogs' legs: Whalemeat 03.01 Fish, fresh (live or dead), chilled or frozen: B. Saltwater fish: II. Fillets: (b) frozen C. Livers and roes 03.02 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process: C. Livers and roes 03.03 Crustaceans and molluscs, whether in shell or not, fresh (live or dead), chilled, frozen, salted, in brine or dried; crustaceans, in shell, simply boiled in water: A. Crustaceans: IV. Shrimps and prawns: (a) Prawns (Pandalidae sp. p.) 15.04Fats and oils, of fish and marine mammals, whether or not refinedex 15.12 Animal or vegetable oils and fats, wholly or partly hydrogenated, or solidified or hardened by any other process, whether or not refined, but not further prepared: Oils and fats of fish and marine mammals 16.04 Prepared or preserved fish, including caviar and caviar substitutes: A. Caviar and caviar substitutes 16.05Crustaceans and molluscs, prepared or preserved23.01Flours and meals, of meat, offals, fish, crustaceans or molluscs, unfit for human consumption; greaves Frozen fish fillets shall be exempt from import duties only if Iceland respects the reference prices established by the Community and the measures adopted by it under Article 25 a of Council Regulation (EEC) No 2142/70 of 20 October 1970, amended in the last instance by the Act concerning the Conditions of Accession and the Adjustments to the Treaties, to avoid unstable prices or unequal conditions of competition between fish frozen on board and fish frozen on land, and to remedy the difficulties which could arise with regard to the stability of supply.

2 Customs duties on imports into the Community of the following products originating in Iceland: Common Customs Tariff heading NoDescription03.01 Fish, fresh (live or dead), chilled or frozen: B. Saltwater fish: I. Whole, headless or in pieces: (f) Redfish (Sebastes marinus) (h) Cod (Gadus morrhua or Gadus callarias) (ij) Coalfish (Pollachius virens or Gadus virens) (k) Haddock shall be adjusted to the following levels: for products falling within subheading No 03.01 B I f TimetableRate applicable to imports into the Community as originally constituted and IrelandRate applicable to imports into the United KingdomRate applicable to imports into Denmark and Norway1 July 19736801 January 19745601 January 19754401 January 1976222 for products falling within subheadings Nos 03.01 B I h, ij, k TimetableRate applicable to imports into the Community as originally constituted and IrelandRate applicable to imports into the United KingdomRate applicable to imports into Denmark and Norway1 July 197312901 January 19749701 January 19756501 January 19763·73·73·7 The reference prices established in the Community for imports of these products shall continue to apply.

3 Duties on imports into the Community of the following products originating in Iceland: Common Customs Tariff heading NoDescription16.04 Prepared or preserved fish, including caviar and caviar substitutes: C. Herring G. Other (excluding conserves of smoked coalfish) shall be adjusted to the following levels: TimetableRate applicable to imports into the Community as originally constitutedRate applicable to imports into IrelandRate applicable to imports into Denmark, Norway and the United Kingdom1 July 1973183801 January 1974163141 January 1975142461 January 1976121781 January 1977101010

1 The Community reserves the right not to apply the provisons of this Protocol if a solution satisfactory to the Member States of the Community and to Iceland has not been found for the economic problems arising from the measures adopted by Iceland concerning fishing rights. The Community shall inform Iceland of its decision on this matter as soon as circumstances permit, and not later than 1 April 1973.

2 If it appears that a satisfactory solution cannot be found until after this date, the Community may postpone the decision on the application of this Protocol, provided it informs Iceland accordingly. The Community shall inform Iceland as soon as the decision is taken.

3 If this Protocol is implemented after 1 July 1973, the Community shall make any necessary changes to the timetables laid down in Article 1.

Without prejudice to the provisions of Article 37 of the Agreement, Iceland reserves its decision concerning the deposit of its instruments of ratification depending on the manner in which Article 2 is applied.