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Agreement Between The Republic Of Latvia And The Republic Of Hungary On Amendments To The Protocol 3 On Rules Of Origin To The Free Trade Agreement Between The Republic Of Latvia And The Republic Of Hungary

The Republic of Latvia (hereinafter called Latvia) and Republic of Hungary (hereinafter called Hungary),

Having regard to the Free Trade Agreement between the Republic of Latvia, of the one part, and the Republic of Hungary, of the other part, signed in Budapest on 10 June 1999,

Whereas the definition of the term "originating products" needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, Turkey, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to revise the Articles concerning the amounts in order to fully take into consideration the entry into force of the euro;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAVE DECIDED AS FOLLOWS:

Article 1

Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation is hereby amended as follows:

1. In Articles 21 and 26 the word "ECU" shall be replaced by "euro".

2. Article 30 shall be replaced by the following:

"Article 30

Amounts expressed in euro

1. Amounts in the national currency of the exporting country equivalent to the amounts expressed in euro shall be fixed by the exporting country and communicated to the importing country.

2. When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country. When the products are invoiced in the currency of another country referred to in Articles 3 and 4, the importing country shall recognise the amount notified by the country concerned.

3. The amounts to be used in any given national currency shall be the equivalent in that national currency of the amounts expressed in euro as at the first working day of October 1999.

4. The amounts expressed in euro and their equivalents in the national currencies of Latvia and Hungary shall be reviewed by the Joint Committee at the request of Latvia or Hungary. When carrying out this review, the Joint Committee shall ensure that there will be no decrease in the amounts to be used in national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro".

3. Annex II shall be amended as follows:

(a)	the entry for HS heading 1904 shall be replaced by:
1904	Prepared foods obtained by the	Manufacture:
	swelling or roasting of cereal	- from materials not
	or cereal products (for example,	classified within
	corn flakes); cereals (other than maize	heading No1806;
	(corn)) in grain form or in the	- in which all the cereals
	form of flakes of other worked	and flour (except durum
	grains (except flour and meal),	wheat and its derivatives
	pre-cooked; or otherwise prepared,	and Zea indurata maize)
	not elsewhere specified or included	used must be wholly obtained;1
		- in which the value of
		any materials of Chapter
		17 used does not exceed
		30 % of the ex - works
		price of the product
	1 The exception concerning the Zea indurata maize is applicable until 31.12.2002.

(b)	the entry for HS heading 2207 shall be replaced by:
2207	Undenatured ethyl alcohol of	Manufacture:
	an alcoholic strength by volume	- from materials not
	of 80% vol or higher; ethyl	classified within heading
	alcohol and other spirits,	Nos2207 or 2208;
	denatured, of any strength	- in which all the grapes or
		any material derived from
		grapes used must be wholly
		obtained or if all the other
		materials used are already
		originating, arrack may be
		used up to a limit of 5% by
		volume

(c)	the entry for HS Chapter 57 shall be replaced by:
Chapter	Carpets and other textile	Manufacture from1:
57	floor coverings:	- natural fibres or
	- Of needleloom felt	- chemical materials or
		textile pulp
		However:
		- polypropylene filament
		of heading No5402, or
		- polypropylene fibres
		of heading Nos5503
		or 5506, or
		- polypropylene filament
		tow of heading No5501,
		of which the denomination
		in all cases of a single
		filament or fibre is less than
		9 decitex, may be used
		provided their value does
		not exceed 40% of the
		ex-works price of the
		product Jute fabric may
		be used as backing
	- Of other felt	Manufacture from1:
		- natural fibres not carded
		or combed or otherwise
		processed for spinning, or
		- chemical materials or
		textile pulp
	- Of other textiles materials	Manufacture from1:
		- coir or jute yarn,
		- synthetic or artificial
		filament yarn,
		- natural fibres, or
		- man-made staple fibres
		not carded or combed
		or otherwise processed
		for spinning Jute fabric
		may be used as backing
	1 For special conditions relating to products made of a mixture of textile materials, see Introductory Note 5.

	(d) the entry for HS heading 8401 shall be replaced by:
ex 8401	Nuclear fuel elements	Manufacture in which	Manufacture
		all the materials used	in which the
		are classified within a	value of all
		heading other than that	the materials
		of the product1	does not
			exceed 30%
			of the
			ex-works
			price of the
			final product	1 This rule shall apply until 31 December 2005.

	(e) the following shall be inserted between the entries for HS heading Nos 9606 and 9612:
9608	Ball-point pens; felt-tipped	Manufacture in which all
	and other porous-tipped pens	the materials used are
	and markers; fountain pens,	classified within a heading
	stylograph pens and other pens;	other than that of the product.
	duplicating stylos; propelling or	However, nibs or nib-points
	sliding pencils; pen-holders,	classified within the same
	pencil-holders and similar holders;	heading may be used
	parts (including caps and clips) of
	the foregoing articles, other than
	those of heading No9609

Article 2

This Agreement shall enter into force on the date of entering into force of the Free Trade Agreement between the Republic of Latvia and the Republic of Hungary.

Done at Budapest this 10th day of December, 1999 in two authentic copies in the English language.

The Representative The Representative

of the Republic of Latvia of the Republic of Hungary

Document information

Status:

Not in force

State:

Hungary

Type:

international agreement
bilateral

Entry into force:

01.01.2000.

Signature:

10.12.1999.

Place of signature:

Budapešta

End of validity:

01.05.2004.

Ratification:

Parliament

Publication:

, 446/451, 30.12.1999.

Language:

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