AGREEMENT in the form of an exchange of letters between the European Economic Community and the Republic of Iceland on the provisional application of the Agreement on certain arrangements in the field of agriculture

Letter No 1

Brussels, 17 March 1993.

Sir,

I have the honour to refer to the discussions concerning the provisional application of the Agreement concerning certain arrangements in the field of agriculture, between the European Economic Community and Iceland, signed in Oporto on 2 May 1992, which have taken place in the framework of the discussions on a Protocol adjusting the Agreement on the European Economic Area.

I hereby confirm that these discussions have resulted in the arrangement between the European Economic Community and Iceland the text of which is set out below:

'Arrangement between the European Economic Community and the Republic of Iceland in the field of agriculture

1. Taking into account the determination of the Contracting Parties to the EEA Agreement to bring that Agreement into force by 1 July 1993, and with reference to Article 15 of the Free Trade Agreement between the European Economic Community and the Republic of Iceland, the European Economic Community and the Republic of Iceland agree that the Agreement in the form of an exchange of letters between the European Economic Community and the Republic of Iceland concerning certain arrangements in the field of agriculture, signed in Oporto on 2 May 1992, shall be applied provisionally as from 15 April 1993. If the EEA Agreement has not entered into force on 1 January 1994, this arrangement shall be terminated then, unless the Contracting Parties decide otherwise.

2. For the purpose of the abovementioned provisional application and pending the entry into force of the EEA Agreement, the provisions of points 3.2, 4 and 5 of Annex VI on rules of origin of the Agreement signed in Oporto on 2 May 1992 shall be replaced by those which are set out below:

"3.2. Evidence that the conditions referred to in point 3.1 have been fulfilled shall be supplied to the customs authorities of the importing country in accordance with Article 12 (6) of Protocol 3 of the Free Trade Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of originating products and methods of administrative cooperation.

4. Originating products within the meaning of this Annex shall, on importation into the Community or Iceland, benefit from the Agreement upon submission of a proof of origin issued or made out in accordance with the provisions of Title II of Protocol 3 of the Free Trade Agreement.

5. The provisions of Protocol 3 of the Free Trade Agreement concerning drawback, proof of origin and arrangements for administrative cooperation shall apply. As far as the provision concerning drawback is concerned, it is understood that the prohibition of drawback shall apply only in respect of materials which are of the kind to which the Free Trade Agreement applies."'

This exchange of letters shall be approved by the Contracting Parties in accordance with their own procedures.

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.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Communities

Letter No 2

Brussels, 17 March 1993.

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 the provisional application of the Agreement concerning certain arrangements in the field of agriculture, between the European Economic Community and Iceland, signed in Oporto on 2 May 1992, which have taken place in the framework of the discussions on a Protocol adjusting the Agreement on the European Economic Area.

I hereby confirm that these discussions have resulted in the arrangement between the European Economic Community and Iceland the text of which is set out below:

"Arrangement between the European Economic Community and the Republic of Iceland in the field of agriculture

1. Taking into account the determination of the Contracting Parties to the EEA Agreement to bring that Agreement into force by 1 July 1993, and with reference to Article 15 of the Free Trade Agreement between the European Economic Community and the Republic of Iceland, the European Economic Community and the Republic of Iceland agree that the Agreement in the form of an exchange of letters between the European Economic Community and the Republic of Iceland concerning certain arrangements in the field of agriculture, signed in Oporto on 2 May 1992, shall be applied provisionally as from 15 April 1993. If the EEA Agreement has not entered into force on 1 January 1994, this arrangement shall be determined then, unless the Contracting Parties decide otherwise.

2. For the purpose of the abovementioned provisional application and pending the entry into force of the EEA Agreement, the provisions of points 3.2, 4 and 5 of Annex VI on rules of origin of the Agreement signed in Oporto on 2 May 1992 shall be replaced by those which are set out below:

'3.2. Evidence that the conditions referred to in point 3.1 have been fulfilled shall be supplied to the customs authorities of the importing country in accordance with Article 12 (6) of Protocol 3 of the Free Trade Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of originating products and methods of administrative cooperation.

4. Originating products within the meaning of this Annex shall, on importation into the Community or Iceland, benefit from the Agreement upon submission of a proof of origin issued or made out in accordance with the provisions of Title II of Protocol 3 of the Free Trade Agreement.

5. The provisions of Protocol 3 of the Free Trade Agreement concerning drawback, proof of origin and arrangements for administrative cooperation shall apply. As far as the provision concerning drawback is concerned, it is understood that the prohibition of drawback shall apply only in respect of materials which are of the kind to which the Free Trade Agreement applies.'"

This exchange of letters shall be approved by the Contracting Parties in accordance with their own procedures.

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.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Iceland