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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,



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
(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
- 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
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




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 "Latvijas Vēstnesis", 446/451, 30.12.1999.
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