22002A0930(01)

22002A0930(01) 22002A0930(01) Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Lebanon, of the other part - Final act Official Journal L 262 , 30/09/2002 P. 0002 - 0183  Dates: of document:   17/06/2002 of effect:   01/03/2003; Entry into force See Art 42.2 And 22003X0122(01) of signature:   17/06/2002; Luxembourg end of validity:   99/99/9999; See Art. 39.1 Authentic language: German ; English ; Danish ; Spanish ; French ; Finnish ; Greek ; Italian ; Dutch ; Portuguese ; Swedish ; Arabic ; The official languages ; Other than Community language Author: European Community ; Lebanon Subject matter: External relations ; Commercial policy Directory code: 11401020 EUROVOC descriptor: EC interim agreement ; EC trade agreement ; free movement of goods ; customs regulations ; Lebanon ; cooperation policy Legal basis: 197E133................... Adoption 197E300-P2L1FR1........... Adoption Instruments cited: 294A1223(01).............. 294A1223(03).............. 294A1223(09).............. 294A1223(14).............. 294A1223(15).............. Amendment to: 277A0503(01)...... Amendment..... Replacement ART 8 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 9 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 23 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 22 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 21 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 20 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 19 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 18 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 17 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 33 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 32 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 31 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 10 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 30 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 28 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 27 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 26 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 25 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 46 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 44 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 43 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 42 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 41 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 11 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 40 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 37 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 36.1 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 34 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 16 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 48 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 49 from DATEFF 277A0503(01)...... Amendment..... Replacement PROT 2 from DATEFF 277A0503(01)...... Amendment..... Replacement ANN A. from DATEFF 277A0503(01)...... Amendment..... Replacement ANN B. from DATEFF 277A0503(01)...... Amendment..... Replacement ART 12 from DATEFF 277A0503(01)...... Amendment..... Replacement ANN C. from DATEFF 277A0503(01)...... Amendment..... Replacement ART 13 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 14 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 15 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 47 from DATEFF 277A0503(01)...... Amendment..... Replacement ART 24 from DATEFF 277A0503(02)...... Replacement... from DATEFF Amended by: Adopted by.... 302D0761.......... from 22/07/2002 Subsequent related instruments: Relation...... 203X0122(01)...... Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Lebanon, of the other part THE EUROPEAN COMMUNITY, hereinafter referred to as the "Community", of the one part, and THE REPUBLIC OF LEBANON, hereinafter referred to as "Lebanon", of the other part, WHEREAS the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the Republic of Lebanon, of the other part, was signed at Luxembourg on 17 June 2002, WHEREAS the Euro-Mediterranean Association Agreement is intended to strengthen and widen relations between the Community and its Member States and Lebanon established by the existing Cooperation Agreement of 1977, WHEREAS it is in the mutual interest of the Parties to implement as speedily as possible, by means of an Interim Agreement, the provisions of the Association Agreement on trade and trade-related matters, WHEREAS it is necessary to ensure that, pending the entry into force of the Association Agreement and the establishment of the Association Council, the Cooperation Council set up by the existing Cooperation Agreement of 1977 exercise the powers assigned by the Association Agreement to the Association Council, which are necessary in order to implement the Interim Agreement, HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries: THE EUROPEAN COMMUNITY Josep Piquł I Camps Minister of Foreign Affairs of the Kingdom of Spain President-in-Office of the Council of the European Union Chris Patten Member of the Commission of the European Communities LEBANON Mahmoud Hammoud Minister of Foreign Affairs and Emigrants WHO, having exchanged their full powers, found in good and due form, HAVE AGREED AS FOLLOWS: TITLE I GENERAL PRINCIPLES Article 1 (aa2) Relations between the Parties, as well as all the provisions of this Agreement itself, shall be based on respect of democratic principles and fundamental human rights as set out in the Universal Declaration on Human Rights, which guides their internal and international policy and constitutes an essential element of this Agreement. TITLE II FREE MOVEMENT OF GOODS Article 2 (aa6) The Community and Lebanon shall gradually establish a free trade area over a transitional period not exceeding 12 years from the entry into force of this Agreement according to the modalities set out in this title and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the GATT. CHAPTER 1 INDUSTRIAL PRODUCTS Article 3 (aa7) The provisions of this Chapter shall apply to products originating in the Community and Lebanon falling within Chapters 25 to 97 of the Combined Nomenclature and of the Lebanese customs tariff with the exception of the products listed in Annex 1. Article 4 (aa8) Imports into the Community of products originating in Lebanon shall be allowed free of customs duties and of any other charge having equivalent effect. Article 5 (aa9) 1. Customs duties and charges having equivalent effect applicable on import into Lebanon of products originating in the Community shall be progressively abolished in accordance with the following schedule: - five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 88 % of the basic rate, - six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 76 % of the basic rate, - seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 64 % of the basic rate, - eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 52 % of the basic rate, - nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic rate, - 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 28 % of the basic rate, - 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 16 % of the basic rate, - 12 years after the date of entry into force of this Agreement the remaining duties and charges shall be abolished. 2. In the event of serious difficulties for a given product, the schedule applicable under paragraph 1 above may be reviewed by the Cooperation Council by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period of 12 years. If the Cooperation Council has not taken a decision within 30 days of an application by Lebanon to review the schedule, Lebanon may suspend the schedule provisionally for a period which may not exceed one year. 3. For each product concerned, the basic duty to be gradually reduced as provided in paragraph 1 shall be the rates referred to in Article 15. Article 6 (aa10) The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature. Article 7 (aa11) 1. Exceptional measures of limited duration which derogate from the provisions of Article 5 may be taken by Lebanon in the form of an increase or reintroduction of customs duties. 2. These measures may only concern new and infant industries, or sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties entail major social problems. 3. Customs duties on imports into Lebanon of products originating in the Community that are introduced by such exceptional measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 20 % of the yearly average of total imports of industrial products from the Community during the last three years for which statistics are available. 4. These measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Cooperation Council. They shall cease to apply at the latest on the expiry of the maximum transitional period of 123 years. 5. No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having equivalent effect concerning that product. 6. Lebanon shall inform the Cooperation Council of any exceptional measures it intends to adopt and, at the request of the Community, consultations shall be held on the measures and sectors concerned before they are implemented. When adopting such measures Lebanon shall provide the Cooperation Council with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing-out of these duties in equal annual instalments starting no later than the end of the second year following their introduction. The Cooperation Council may decide on a different schedule. 7. By way of derogation from provisions of paragraph 4, the Cooperation Council may exceptionally, to take account of the difficulties involved in setting up new industries, endorse the measures already taken by Lebanon pursuant to paragraph 1 for a maximum period of three years beyond the 12 year transitional period. CHAPTER 2 AGRICULTURAL, FISHERIES AND PROCESSED AGRICULTURAL PRODUCTS Article 8 (aa12) The provisions of this Chapter shall apply to products originating in the Community and Lebanon falling within Chapters 1 to 24 of the Combined Nomenclature and of the Lebanese customs tariff and to the products listed in Annex 1. Article 9 (aa13) The Community and Lebanon shall progressively establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products, of interest to both parties. Article 10 (aa14) 1. Agricultural products originating in Lebanon listed in Protocol 1 on importation into the Community shall be subject to the arrangement set out in that Protocol. 2. Agricultural products originating in the Community listed in Protocol 2 on importation into Lebanon shall be subject to the arrangement set out in that Protocol. 3. Trade in processed agricultural products falling under this chapter shall be subject to the arrangements set out in Protocol 3. Article 11 (aa15) 1. Five years after the entry into force of this Agreement, the Community and Lebanon shall assess the situation in order to determine measures to be applied by the Community and Lebanon one year following the revision of this Agreement, in accordance with the objective set out in Article 9. 2. Without prejudice to the provisions of paragraph 1 and taking account of the volume of trade in agricultural, fisheries and processed agricultural products between the two Parties and the particular sensitivity of such products, the Community and Lebanon shall examine on a regular basis in the Cooperation Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions. Article 12 (aa16) 1. In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned. 2. The Party carrying out such modification shall inform the Cooperation Council thereof. At the request of the other Party, the Cooperation Council shall meet to take due account of the interest of the other Party. 3. If the Community or Lebanon, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement. 4. Any modification of the arrangements made by this Agreement shall be the subject, at the request of the other Party, of consultations within the Cooperation Council. Article 13 (aa17) 1. Both Parties agree to cooperate to reduce the potential for fraud in the application of the trade provisions of this Agreement. 2. Notwithstanding other provisions of this Agreement, where one Party finds that there is sufficient evidence of fraud such as a significant increase in trade products by one party to the other party, beyond the level reflecting economic conditions such as normal production and export capacities, or failure to provide administrative cooperation as required for the verification of evidence of origin by the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the appropriate measures it deems necessary. In the selection of the measure priority must be given to those which least disturb the functioning of the arrangements established in this Agreement. CHAPTER 3 COMMON PROVISIONS Article 14 (aa18) 1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced in trade between the Community and Lebanon, nor shall those already applied upon entry into force of this Agreement be increased unless this Agreement provides otherwise. 2. No new quantitative restriction on imports or measure having equivalent effect shall be introduced in trade between the Community and Lebanon. 3. Quantitative restrictions on imports and measures having equivalent effect in trade between Lebanon and the Community shall be abolished upon the entry into force of this Agreement. 4. Neither the Community nor Lebanon shall apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures of equivalent effect. Article 15 (aa19) 1. For each product the basic rate to which the successive reductions laid down in Article 5(1) are to be applied shall be that actually applied vis-š-vis the Community on the day of conclusion of the negotiations. 2. In the event of the accession of Lebanon to the WTO, the applicable rates for imports between the Parties shall be the WTO bound rate or lower effectively applied rate enforced as of the date of the accession. If, after the accession to the WTO, a tariff reduction is applied on an erga omnes basis, the reduced rate shall apply. 3. The provision laid down in paragraph 2 is of application for any tariff reduction applied after the day of conclusion of the negotiations on an erga omnes basis. 4. The Parties shall communicate to each other their respective applied rates on the day of conclusion of the negotiations. Article 16 (aa20) Products originating in Lebanon shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves. Article 17 (aa21) 1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party. 2. Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them either directly or indirectly. Article 18 (aa22) 1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement. 2. Consultations between the Parties shall take place within the Cooperation Council concerning agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies with third countries. In particular, in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account can be taken of the mutual interests of the Community and Lebanon. Article 19 (aa23) If one of the Parties finds that dumping is taking place in trade with the other Party in line with prevailing international rules as defined in Article VI of the General Agreement on Tariffs and Trade (GATT) 1994 and related internal legislation, it may take appropriate measures against this practice in accordance with the WTO Agreement on the implementation of Article VI of the GATT 1994 and related internal legislation. Article 20 (aa24) 1. Without prejudice to Article 27, the WTO Agreement on Subsidies and Countervailing Measures shall apply between the Parties. 2. Until the necessary rules referred to in Article 27(2) are adopted, if either Party finds that subsidy is taking place in trade with the other Party in line with prevailing international rules as defined in Articles VI and XVI of the General Agreement on Tariffs and Trade (GATT) 1994 and related internal legislation, it may invoke appropriate measures against this practice in accordance with those rules as defined by the WTO Agreement on Subsidies and Countervailing Measures and related internal legislation. Article 21 (aa25) 1. The provisions of Article XIX of the GATT 1994 and the WTO Agreement on Safeguards and related internal legislation are applicable between the Parties. 2. Before applying safeguard measures as defined by international rules, the Party intending to apply such measures shall supply the Cooperation Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. In order to find such a solution the Parties shall immediately hold consultations within the Cooperation Council. If, as a result of the consultations, the Parties do not reach an agreement within 30 days of the initiation of the consultations on a solution to avoid the application of the safeguard measures, the Party intending to apply safeguard measures may apply the provisions of Article XIX of the GATT 1994 and the WTO Agreement on Safeguards. 3. In the selection of safeguard measures pursuant to this article, the Parties shall give priority to those, which cause least disturbance to the achievement of the objectives of this Agreement. 4. Safeguard measures shall be notified immediately to the Cooperation Council and shall be the subject of periodic consultations within the Cooperation Council, particularly with a view to their abolition as soon as circumstances permit. Article 22 (aa26) 1. Where compliance with the provisions of Article 14(4) leads to: (a) re-export to a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures or charges having equivalent effect; or (b) a serious shortage, or threat thereof, of a product essential to the exporting Party; and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in paragraph 2. 2. The difficulties arising from the situations referred to in paragraph 1 shall be submitted for examination to the Cooperation Council. The Cooperation Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting party may apply appropriate measures on the exportation of the product concerned. The measures shall be non-discriminatory and shall be eliminated when conditions no longer justify their maintenance. Article 23 (aa27) Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; of the protection of health and life of humans, animals or plants; of the protection of national treasures of artistic, historic or archaeological value; of the protection of intellectual, industrial and commercial property; of rules relating to gold and silver and conservation of exhaustible natural resources. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties. Article 24 (aa28) The concept of "originating products" for the application of the provisions of the present title and the methods of administrative cooperation relating thereto are laid down in Protocol 4. Article 25 (aa29) The Combined Nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Lebanese customs tariff shall be applied to the classification of goods for imports into Lebanon. Article 26 (aa34) Where one or several Member States of the Community or Lebanon face or risk facing serious difficulties concerning balance of payments, the Community or Lebanon respectively may, in conformity with the conditions laid down within the framework of the GATT and Articles VIII and XIV of the Statutes of the International Monetary Fund, take restrictive measures with regard to current payments if such measures are strictly necessary. The Community or Lebanon, as appropriate, shall inform the other Party immediately thereof and shall provide as soon as possible a timetable for the removal of such measures. TITLE III TRADE-RELATED PROVISIONS CHAPTER 1 COMPETITION Article 27 (aa35) 1. The following are incompatible with the proper functioning of this Agreement, in so far as they may affect trade between the Community and Lebanon: (a) 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 defined by their respective legislation; (b) abuse by one or more undertakings of a dominant position in the territories of the Community or Lebanon as a whole or in a substantial part thereof, as defined by their respective legislation. 2. The Parties will enforce their respective competition legislation and shall exchange information taking into account the limitations imposed by the requirements of confidentiality. The necessary rules for cooperation in order to implement paragraph 1 shall be adopted by the Cooperation Council within five years of entry into force of this Agreement. 3. If the Community or Lebanon considers that a particular practice is incompatible with the terms of paragraph 1 of this Article, and if such practice causes or threatens to cause serious prejudice to the other Party, it may take appropriate measures after consultation within the Cooperation Council or after 30 working days following referral for such consultation. Article 28 (aa36) The Member States and Lebanon shall progressively adjust, without prejudice to their commitments respectively taken or to be taken under the GATT, any State monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Lebanon. The Cooperation Council will be informed about the measures adopted to implement this objective. Article 29 (aa37) With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Cooperation Council shall ensure that as from the fifth year following the date of entry into force of this Agreement there is neither enacted nor maintained any measure distorting trade between the Community and Lebanon to an extent contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to these enterprises. CHAPTER 2 INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY Article 30 (aa38) 1. Pursuant to the provisions of this Article and of Annex 2, the Parties shall ensure adequate and effective protection of intellectual, industrial and commercial property rights in conformity with the highest international standards, including effective means of enforcing such rights. 2. The implementation of this Article and of Annex 2 shall be regularly reviewed by the Parties. If problems in the area of intellectual property protection affecting trading conditions occur, urgent consultations shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions. CHAPTER 3 CUSTOMS COOPERATION Article 31 (aa56) 1. The Parties shall develop customs cooperation to ensure that the provisions on trade are observed. For this purpose they shall establish a dialogue on customs matters. 2. Cooperation shall focus on the simplification of controls and procedures concerning the customs clearance of goods, and shall take the form of exchange of information among experts and vocational training. 3. Mutual assistance between administrative authorities in customs matters shall take place in accordance with the provisions of Protocol 5. TITLE IV INSTITUTIONAL, GENERAL AND FINAL PROVISIONS Article 32 The Cooperation Council set up by the Agreement between the European Economic Community and the Republic of Lebanon signed on 3 May 1977 shall perform duties assigned to it until the Association Council and the Association Committee provided for in Articles 74 and 77 respectively of the Association Agreement are established. Article 33 (aa75) 1. The Cooperation Council shall consist of the members of the Council of the European Union and members of the Commission of the European Communities, on the one hand, and of members of the Government of Lebanon, on the other. 2. Members of the Cooperation Council may arrange to be represented, in accordance with the provisions laid down in its Rules of Procedure. 3. The Cooperation Council shall establish its Rules of Procedure. 4. The Cooperation Council shall be chaired in turn by a member of the Council of the European Union and a member of the Government of Lebanon in accordance with the provisions laid down in its Rules of Procedure. Article 34 (aa82) 1. Each of the Parties may refer to the Cooperation Council any dispute relating to the application or interpretation of this Agreement. 2. The Cooperation Council may settle the dispute by means of a decision. 3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2. 4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute. The Cooperation Council shall appoint a third arbitrator. The arbitrators' decisions shall be taken by majority vote. Each party to the dispute must take the steps required to implement the decision of the arbitrators. Article 35 (aa83) Nothing in this Agreement shall prevent a Party from taking any measures: (a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests; (b) which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes; (c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security. Article 36 (aa84) 1. In the fields covered by this Agreement and without prejudice to any special provisions contained therein: (a) the arrangements applied by Lebanon in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, companies or firms; (b) the arrangements applied by the Community in respect of Lebanon shall not give rise to any discrimination between Lebanese nationals, companies or firms. 2. The provisions of paragraph 1 shall be without prejudice to the right of the Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence. Article 37 (aa86) 1. The Parties shall take any general or specific measures required to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in this Agreement are attained. 2. If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Cooperation Council with all the relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. 3. In the selection of the appropriate measures referred to in paragraph 2, priority must be given to those which least disturb the functioning of this Agreement. The Parties also agree that these measures shall be taken in accordance with international law and shall be proportional to the violation. These measures shall be notified immediately to the Cooperation Council and shall be the subject of consultations within the Cooperation Council if the other Party so requests. Article 38 (aa87) Annexes 1 and 2 and Protocols 1 to 5 shall form an integral part of this Agreement. Article 39 (aa89) 1. This Agreement shall be applicable until the entry into force of the Association Agreement signed on 17 June 2002. 2. Either Party may denounce this Agreement by notifying the other Party. This Agreement shall cease to apply six months after the date of such notification. Article 40 (aa90) This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of Lebanon. Article 41 (aa91) This Agreement is drawn up in duplicate in the Arabic, Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, and Swedish languages, each of these texts being equally authentic. It shall be deposited with the General Secretariat of the Council of the European Union. Article 42 (aa92) 1. This Agreement shall be approved by the Parties in accordance with their own procedures. 2. This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in paragraph 1 have been completed. 3. Upon its entry into force, this Agreement shall replace Articles 8 to 28, 30 to 34, 36(1), 37, 40 to 44, 46 to 49 of the Cooperation Agreement between the European Economic Community and the Republic of Lebanon, including its Protocol 2, and Annexes A, B and C, and the Agreement between the Member States of the European Coal and Steel Community and Lebanon, signed in Brussels on 3 May 1977. Hecho en Luxemburgo, el diecisiete de junio de dos mil dos./Udfördiget i Luxembourg den syttende juni to tusind og to./Geschehen zu Luxemburg am siebzehnten Juni zweitausendzwei./>ISO_7>øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ ōąśń õŠĮĄ É˙įżč˙į ōž˙ šłūłĄōõĖ ōž˙./>ISO_1>Done at Luxembourg, on the seventeenth day of June in the year two thousand and two./Fait š Luxembourg, le dix-sept juin deux mille deux./Fatto a Lussemburgo, addü diciassette giugno duemiladue./Gedaan te Luxemburg, de zeventiende juni tweeduizend en twee./Feito no Luxemburgo, em dezeassete de Junho de dois mil e dois./Tehty Luxemburgissa seitsemōntenōtoista pōivōnō kesōkuuta vuonna kaksituhattakaksi./Som skedde i Luxemburg den sjuttonde juni tjugohundratvõ./ >PIC FILE= "L_2002262EN.000901.TIF"> Por la Comunidad Europea/For Det Europöiske Föllesskab/FŽr die Europōische Gemeinschaft/>ISO_7>Ćłń Į÷ż ÅįęųĘńŪśČ Ź˙łżŽĮ÷Įń/>ISO_1>For the European Community/Pour la Communautł europłenne/Per la Comunitš europea/Voor de Europese Gemeenschap/Pela Comunidade Europeia/Euroopan yhteisŠn puolesta/Põ Europeiska gemenskapens vōgnar >PIC FILE= "L_2002262EN.001001.TIF"> >PIC FILE= "L_2002262EN.001002.TIF"> >PIC FILE= "L_2002262EN.001003.TIF"> >PIC FILE= "L_2002262EN.001004.TIF"> LIST OF ANNEXES AND PROTOCOLS >TABLE POSITION> ANNEX 1 LIST OF AGRICULTURAL AND PROCESSED AGRICULTURAL PRODUCTS FALLING UNDER HS CHAPTERS 25 TO 97 REFERRED TO IN ARTICLES 3 AND 8 >TABLE POSITION> ANNEX 2 INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY REFERRED TO IN ARTICLE 30 1. By the end of the fifth year after the entry into force of this Agreement, Lebanon shall ratify the revisions to the following multilateral conventions on intellectual property, to which Member States and Lebanon are parties or which are de facto applied by Member States: - Paris Convention for the protection of industrial property (Stockholm Act 1967 and amended in 1979), - Berne Convention for the Protection of Literary and Artistic Works (revised at Paris in 1971 and amended in 1979), - Nice Agreement concerning the International Classification of Goods and Services for the purposes of the Registration of Marks (Geneva 1977, amended in 1979). 2. By the end of the fifth year after the entry into force of this Agreement, Lebanon shall accede to the following multilateral conventions to which member states are parties or which are de facto applied by Member States: - Patent Cooperation Treaty (Washington, 1970, amended in 1979 and modified in 1984), - Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure (1977, modified in 1980), - Protocol to the Madrid Agreement concerning the international registration of marks (Madrid, 1989), - Trademark Law Treaty (Geneva, 1994), - International Convention for the Protection of New Varieties of Plants (UPOV) (Geneva Act of 1991), - Agreement on Trade-related Aspects of Intellectual Property, Annex 1C to the Agreement establishing the World Trade Organisation (TRIPs, Marrakesh 1994). PROTOCOL 1 concerning arrangements applicable to imports into the Community of agricultural products originating in Lebanon referred to in Article 10(1) 1. Imports into the Community of the following products originating in Lebanon shall be subject to the conditions set out below. 2. Imports into the Community of those agricultural products originating in Lebanon other than those listed in this Protocol shall be allowed free of customs duty. 3. For the first year of application, the volumes of tariff quotas shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before the date of entry into force of this Agreement. >TABLE POSITION> PROTOCOL 2 concerning arrangements applicable to imports into Lebanon of agricultural products originating in the Community referred to in Article 10(2) 1. Imports into the Republic of Lebanon of the following products originating in the Community shall be subject to the conditions set out below. 2. The reduction rates in column (B) of the customs duty in (A) shall neither apply to the minimum duties nor to the excise duties in (C). >TABLE POSITION> PROTOCOL 3 on trade between Lebanon and the Community in processed agricultural products referred to in Article 10(3) Article 1 Imports into the Community of processed agricultural products originating in Lebanon shall be subject to the customs duties and charges having equivalent effects mentioned in Annex 1 of this Protocol. Article 2 1. Imports into Lebanon of processed agricultural products originating in the Community shall be subject to the customs duties and charges having equivalent effect as mentioned in Annex 2 of this Protocol. 2. The tariff dismantling schedule applying in accordance to paragraph 1 shall be that referred to in Article 5(1) of this Agreement, unless otherwise specified in Annex 2 of this Protocol. Article 3 The reductions of customs duties mentioned in Annexes 1 and 2 shall apply to the basic duties referred to in Article 15 of this Agreement. Article 4 1. Customs duties applied pursuant to Articles 1 and 2 may be reduced where in trade between the Community and Lebanon, the duties applied to the basic products are reduced, or where such reductions are the result of mutual concessions relating to processed agricultural products. 2. As regards the duties applied by the Community, the reductions provided for under paragraph 1 will be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deduced from the duties applied to these basic agricultural products. 3. The reduction referred to in paragraph 1, the list of products concerned and, where appropriate, the tariff quotas within which the reduction applies shall be established by the Association Council. Article 5 The Community and Lebanon shall inform each other of the administrative arrangements adopted for the products covered by this Protocol. These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible. ANNEX 1 CONCERNING ARRANGEMENTS APPLICABLE TO IMPORTS INTO THE COMMUNITY OF PROCESSED AGRICULTURAL PRODUCTS ORIGINATING IN LEBANON Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording for the description of the products is to be considered as having no more than indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes as they exist at the time of adoption of the current act. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description together. LIST 1 >TABLE POSITION> LIST 2 >TABLE POSITION> LIST 3 >TABLE POSITION> ANNEX 2 CONCERNING ARRANGEMENTS APPLICABLE TO IMPORTS INTO LEBANON OF PROCESSED AGRICULTURAL PRODUCTS ORIGINATING IN THE COMMUNITY >TABLE POSITION> PROTOCOL 4 concerning the definition of the concept of "originating products" and methods of administrative cooperation TABLE OF CONTENTS >TABLE POSITION> TITLE I GENERAL PROVISIONS Article 1 Definitions For the purposes of this Protocol: (a) "manufacture" means any kind of working or processing including assembly or specific operations; (b) "material" means any ingredient, raw material, component or part, etc., used in the manufacture of the product; (c) "product" means the product being manufactured, even if it is intended for later use in another manufacturing operation; (d) "goods" means both materials and products; (e) "customs value" means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation); (f) "ex-works price" means the price paid for the product ex-works to the manufacturer in the Community or Lebanon in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported; (g) "value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the Community or Lebanon; (h) "value of originating materials" means the value of such materials as defined in subparagraph (g) applied mutatis mutandis; (i) "added value" shall be taken to be the ex-works price minus the customs value of each of the products incorporated which did not originate in the country in which those products were obtained; (j) "chapters" and "headings" mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the harmonised commodity description and coding system, referred to in this Protocol as the "Harmonised System" or "HS"; (k) "classified" refers to the classification of a product or material under a particular heading; (l) "consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice; (m) "territories" includes territorial waters. TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" Article 2 General requirements 1. For the purpose of implementing this Agreement, the following products shall be considered as originating in the Community: (a) products wholly obtained in the Community within the meaning of Article 5 of this Protocol; (b) products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 6 of this Protocol. 2. For the purpose of implementing this Agreement, the following products shall be considered as originating in Lebanon: (a) products wholly obtained in Lebanon within the meaning of Article 5 of this Protocol; (b) products obtained in Lebanon incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Lebanon within the meaning of Article 6 of this Protocol. Article 3 Bilateral cumulation of origin 1. Materials originating in the Community shall be considered as materials originating in Lebanon when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 7(1) of this Protocol. 2. Materials originating in Lebanon shall be considered as materials originating in the Community when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 7(1) of this Protocol. Article 4 Diagonal cumulation of origin 1. Subject to the provisions of paragraphs 2 and 3, materials originating in any of the countries which are signatory to a European-Mediterranean Association Agreement, within the meaning of the Agreements between the Community and Lebanon and these countries shall be considered as originating in the Community or Lebanon when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing. This paragraph shall not apply to materials originating in Turkey which are mentioned in the list at Annex III to this Protocol. 2. Products which have acquired originating status by virtue of paragraph 1 shall only continue to be considered as products originating in the Community or Lebanon when the value added there exceeds the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the products concerned shall be considered as originating in the country referred to in paragraph 1 which accounts for the highest value of originating materials used. In the allocation of origin, no account shall be taken of materials originating in the other countries referred to in paragraph 1 which have undergone sufficient working or processing in the Community or Lebanon. 3. The cumulation provided for in this Article may only be applied where the materials used have acquired the status of originating products by an application of rules of origin identical to the rules in this Protocol. The Community and Lebanon shall provide each other, through the European Commission with details of agreements and their corresponding rules of origin which have been concluded with the other countries referred to in paragraph 1. 4. Once the requirements laid down in paragraph 3 have been fulfilled, and a date for the entry into force of these provisions has been agreed, each party shall fulfill its own notification and information obligations. Article 5 Wholly obtained products 1. The following shall be considered as wholly obtained in the Community or Lebanon: (a) mineral products extracted from their soil or from their seabed; (b) vegetable products harvested there; (c) live animals born and raised there; (d) products from live animals raised there; (e) products obtained by hunting or fishing conducted there; (f) products of sea fishing and other products taken from the sea outside the territorial waters of the Community or Lebanon by their vessels; (g) products made aboard their factory ships exclusively from products referred to in subparagraph (f); (h) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste; (i) waste and scrap resulting from manufacturing operations conducted there; (j) products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil; (k) goods produced there exclusively from the products specified in subparagraphs (a) to (j). 2. The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships: (a) which are registered or recorded in a Community Member State or in Lebanon; (b) which sail under the flag of a Community Member State or of Lebanon; (c) which are owned to an extent of at least 50 % by nationals of Community Member States or of Lebanon, or by a company with its head office in one of these States, of which the manager or managers, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of Community Member States or of Lebanon and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States; (d) of which the master and officers are nationals of Community Member States or of Lebanon; and (e) of which at least 75 % of the crew are nationals of Community Member States or of Lebanon. Article 6 Sufficiently worked or processed products 1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled. The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture. 2. Notwithstanding paragraph 1, the products which are not wholly obtained and listed in Annex IIa are considered to be sufficiently worked or processed when the conditions set out in the list in Annex IIa are fulfilled. The provision of this paragraph shall apply for three years following the entry into force of this Agreement. 3. Notwithstanding paragraph 1 and 2, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that: (a) their total value does not exceed 10 % of the ex-works price of the product; (b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph. This paragraph shall not apply to products falling within chapters 50 to 63 of the Harmonised System. 4. Paragraphs 1, 2 and 3 shall apply except as provided in Article 7. Article 7 Insufficient working or processing operations 1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 6 are satisfied: (a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations); (b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up; (c) (i) changes of packaging and breaking up and assembly of packages; (ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations; (d) affixing marks, labels and other like distinguishing signs on products or their packaging; (e) simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in the Community or Lebanon; (f) simple assembly of parts to constitute a complete product; (g) a combination of two or more operations specified in subparagraphs (a) to (f); (h) slaughter of animals. 2. All the operations carried out in either the Community or Lebanon on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1. Article 8 Unit of qualification 1. The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System. Accordingly, it follows that: (a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification; (b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol. 2. Where, under general rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin. Article 9 Accessories, spare parts and tools Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question. Article 10 Sets Sets, as defined in general rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set. Article 11 Neutral elements In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture: (a) energy and fuel; (b) plant and equipment; (c) machines and tools; (d) goods which do not enter and which are not intended to enter into the final composition of the product. TITLE III TERRITORIAL REQUIREMENTS Article 12 Principle of territoriality 1. The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in the Community or Lebanon, except as provided for in Article 4. 2. If originating goods exported from the Community or Lebanon to another country are returned, except in so far as provided for in Article 4 they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that: (a) the goods returned are the same goods as those exported; and (b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported. Article 13 Direct transport 1. The preferential treatment provided for under this Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and Lebanon or through the territories of the other countries referred to in Article 4. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, transshipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition. Originating products may be transported by pipeline across territory other than that of the Community or Lebanon. 2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of: (a) a single transport document covering the passage from the exporting country through the country of transit; or (b) a certificate issued by the customs authorities of the country of transit: (i) giving an exact description of the products; (ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used; and (iii) certifying the conditions under which the products remained in the transit country; or (c) failing these, any substantiating documents. Article 14 Exhibitions 1. Originating products, sent for exhibition in a country other than those referred to in Article 4 and sold after the exhibition for importation in the Community or Lebanon shall benefit on importation from the provisions of this Agreement provided it is shown to the satisfaction of the customs authorities that: (a) an exporter has consigned these products from the Community or Lebanon to the country in which the exhibition is held and has exhibited them there; (b) the products have been sold or otherwise disposed of by that exporter to a person in the Community or Lebanon; (c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and (d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition. 2. A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been e …