AGREEMENT in the form of an exchange of letters between the European Economic Community and the Republic of Iceland concerning certain arrangements in agriculture

Oporto, 2 May 1992.

Sir,

I have the honour to refer to the discussions concerning trade arrangements for certain agricultural products between the Community and Iceland which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that as a result of these discussions, the Republic of Iceland will, from the date of entry into force of the EEA Agreement, abolish import duties for the products listed in Annex I to this letter originating in the Community within the meaning of Annex II.

I should be obliged if you would confirm that the Government of the Republic of Iceland is in agreement with the contents of this letter.

On behalf of the Council of the European Communities

Oporto, 2 May 1992.

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'I have the honour to refer to the discussions concerning trade arrangements for certain agricultural products between the Community and Iceland which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that as a result of these discussions, the Republic of Iceland will, from the date of entry into force of the EEA Agreement, abolish import duties for the products listed in Annex I to this letter originating in the Community within the meaning of Annex II.

I should be obliged if you would confirm that the Government of the Republic of Iceland is in agreement with the contents of this letter.'

I have the honour to confirm that my Government is in agreement with the contents of this letter.

For the Government of the Republic of Iceland

ANNEX I

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ANNEX II

RULES OF ORIGIN

1. 1. For the purpose of implementing the Agreement, a product shall be considered to be originating in the Community if it has been wholly obtained there.

2. The following shall be considered as wholly obtained in the Community:

(a) vegetable products harvested there;

(b) live animals born and raised there;

(c) products from live animals raised there;

(d) goods produced there exclusively from products specified in (a) to (c).

3. Packing materials and packing containers presented with a product therein shall not be included with this product for the purpose of determining whether it has been wholly obtained and it shall not be necessary to establish whether such packing materials or packing containers are originating or not.

2. Notwithstanding point 1, the products mentioned in columns 1 and 2 of the list in the Appendix, obtained in the Community and incorporating materials which have not been wholly obtained there, shall also be considered as originating, provided that the conditions set out in column 3 concerning working or processing carried out on such materials have been fulfilled.

3. 1. The preferential treatment provided for under the Agreement applies only to products which are transported directly from the Community to Iceland without passing through the territory of another country. However, products constituting one single consignment may be transported through territory other than that of the Community and Iceland with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the products have remained under the surveillance of the customs authorities in the country of transit or of warehousing and that they have not undergone operations other than unloading, reloading or any other operation designed to preserve them in good condition.

2. Evidence that the conditions referred to in point 3.1 have been fulfilled shall be supplied to the customs authorities of Iceland in accordance with Article 13 (2) of Protocol 4 to the EEA Agreement.

4. 1. Originating products within the meaning of this Annex shall, on importation into Iceland, benefit from the Agreement upon submission of either a movement certificate EUR.1 or an invoice declaration, issued or made out in accordance with Title V of Protocol 4 to the EEA Agreement.

2. The documents referred to in point 4.1 shall clearly indicate that the products concerned are originating in the Community within the meaning of this Agreement by using the word 'Community' in one of the languages in which the Agreement is drawn up, followed by the letters 'AGRI' inserted between brackets. In the case of the invoice declaration, this indication shall replace the reference to 'EEA preferential origin' in the text of the declaration given in Appendix IV of Protocol 4 to the EEA Agreement.

5. The provisions of Titles IV (drawback or exemption), V (proof of origin) and VI (arrangements for administrative cooperation) of Protocol 4 to the EEA Agreement shall apply mutatis mutandis. As far as the provisions of Title IV are concerned, it is understood that the prohibition of drawback of, or exemption from, customs duties contained in these provisions shall apply only in respect of materials which are of the kind to which the EEA Agreement applies.

Appendix

List of products, referred to in point 2, subject to conditions other than the wholly obtained criterion

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