The Member States shall deposit with the Secretariat, agreements relating to trade or aid concluded by them with third countries.
Part TWO. TRADE LIBERALISATION
Article 82. Establishment of Common External Tariff
The Member States shall establish and maintain a common extemal tariff in respect of ail goods which do not qualify for Community treatment in accordance with plans and schedules set out in relevant determinations of COTED.
Article 83. Operation of the Common Extemal Tariff
1. any alteration or suspension of the common extemal tariff on any item shall be decided by coted.
2. where:
(a) a product is not being produced in the community;
(b) the quantity of the product being produced in the Community does not satisfy the demand of the Community; or
(c) the quality of the product being produced in the Community is below the Community standard or a standard the use of which is authorised by COTED, COTED may decide to authorise the reduction or suspension of the Common External Tariff in respect of imports of that product subject to such terms and conditions as it may decide, provided that in no case shall the product imported from third States be accorded more favourable treatment than similar products produced in the Member States.
3. The authority referred to in paragraph 2 to suspend the Common Extemal Tariff may be exercised by the Secretary-General on behalf of COTED during any period between meetings of COTED. Any exercise of such authority by the Secretary-General shall be reported to the next meeting of COTED.
4. Each Member State shall, for the purpose of administering the Common Extemal Tariff, appoint a competent authority which shall be notified to COTED.
5. COTED shail continuously review the Common External Tariff, in whole or in part,
to assess its impact on production and trade, as well as to secure its uniform implementation throughout the Community, in particular, by reducing the need for discretionary application in the day to day administration of the Tariff.
Article 84. Community Rules of Origin
1. Subject to the provisions of this Article, goods that have been consigned from one Member State to a consignee in another Member State shail be treated as being of Community origin, where the goods:
(a) have been wholly produced within the Community; or
(b) have been produced within the Community wholly or partly from materials imported from outside the Community or from materials of undetermined origin bya process which effects a substantial transformation characterised:
(i) by the goods being classified in a tariff heading different from that in which any of those materials is classified; or
(ii) in the case of the goods set out in the List in Schedule I to this Treaty (hereinafter referred to as “the List”), only by satisfying the conditions therefor specified.
2. Goods that have been consigned from one Member State to a consignee in another Member Siate for repair, renovation or improvement shall, on their retum to the Member State from which they were exported, be treated for the purpose of re-importation only, in like manner as goods which are of Community origin, provided that the goods are reconsigned directly to that Member State from which they were exported and the value of materials imported from outside the Community or of undetermined origin which have been used in the process of repair, renovation or improvement does not exceed:
(a) in the case where the goods have undergone the process of repair, renovation or improvement in a More Developed Country, 65 per cent of the cost of repair, renovation or improvement;
(b) in the case where the goods have undergone the process of repair, renovation or improvement in a Less Developed Country, 80 per cent of the cost of repair, renovation or improvement.
3. Where there is an interruption or inadequacy of supplies of regional materials and the manufacturer of goods, for which the qualifying condition for Community origin is that of :wholly produced" or "produced from regional materials", is unable by reason of circumstances beyond his control to obtain supplies of the regional materials, he shall so inform the competent authority.
4. The competent authority shall:
(a) after receipt of information from the manufacturer, cause investigations to be made into the matter, and if he is satisfied that the representation from the manufacturer is justified, submit to the Secretary-General in the Prescribed instrument an application for a certificate provided for in this Article;
(b) at the time of making the application, inform the other Member States of the inability of the manufacturer to obtain the supplies of the required materials from within the Community with respect to quantities and specifications of the materials sought and the period during which the materials are required.
5. The Secretary-General shall, on receipt of the application from the competent authority:
(a) forthwith make the relevant enquiries by the quickest possible means from the competent authorities in the other Member States as to their ability to supply the materials required by the manufacturer, and
(b) request a reply to the enquiry from each competent authority within seven calendar days of the despatch of his enquiry.
6. A competent authority shall reply to the enquiry referred to in paragraph 5 within the time specified.
7. Where the Secretary-General, on the basis of his investigations, is satisfied that the application received from the competent authority justifies favourable consideration, he shall, notwithstanding that he may not have received a reply to his enquiry from one or more Member States, within fourteen calendar days after the receipt ofthe application from the competent authority, issue, on behalf of COTED, a certificate to the competent authority authorising the use of like materials from outside the Community, subject to such conditions as he may think fit to impose.
8. The Secretary-General shall inform the Member States of the issue of his certificate, including any conditions attaching thereto and that notwithstanding anything to the contrary in the Provisions of this Article, goods manufactured from like materials imported from outside the Community shall be deemed to be of Community origin.
9. A Member State may treat as of Community origin any imports consigned from another Member State, provided that the like imports consigned from any other Member State are accorded the same treatment. Member States concemed shall promptly inform COTED of any trading arrangements concluded pursuant to this paragraph and COTED may, as it thinks fit, recommend to the Member States concerned the adoption of altemative trading arrangements.
10. The provisions of Schedule | shall apply to and have effect for the purposes of this Article. COTED shall keep the Schedule and, in particular, the List under continuous review, and may amend the Schedule in order to ensure the achievement of the objectives of the Community.
11. The issue of a certificate in accordance with paragraph 7 shall be reported by the Secretary-General to COTED at the Meeting of COTED next following the date of issue thereof.
Article 85. Export Promotion
1. coted shail adopt appropriate measures for the promotion and export of goods and services.
2. in the implementation of measures to promote exports, coted shall give consideration to:
(a) the establishment and maintenance of effective trade information systems and services;
(b) the design and implementation of trade facilitation programmes including theconduct of market research and the organisation of trade missions;
(c) the co-ordination and support of the active participation of the Member States in international trade promotion fora, including trade fairs and exhibitions.
Article 86. Freedom of Transit
1. The Member States shall grant freedom of transit within the Community with respect to goods and vessels and other vehicles transporting those goods.
2. For the purpose of paragraph 1 of this Article, transit means the passage of goods and of vessels and aircraft and vehicles transporting those goods: (a) through or across the frontier of a Member State; (b) with or without transhipmeni, warehousing, breaking bulk or change of mode of transport,
where the passage is only a portion of a journey beginning and terminating beyond its frontier. 3. In granting freedom of transit within the meaning of paragraph 2, the Member States:
(a) Shall ensure that there are no unnecessary delays or restrictions and that goods, vessels, aircraft and vehicles transporting those goods are subject only to charges for transport, handling, and other services rendered;
(b) shall not discriminate based on the flag of vessels, place of origin, departure, entry, exit or destination or any circumstance relating to the ownership of goods, vessels, or aircraft or vehicles;
(o) shall, with respect to regulations, formalities, fees and other service charges in connection with the transit, ensure that treatment extended to any Member Siate is on terms no less favourable than those extended to all other Member States.
Article 87. Import Duties
1. Save as otherwise provided in this Treaty, Member States shall not impose import duties on goods of Community origin.
2. Nothing in paragraph 1 of this Article shall be construed to extend to the imposition of non-discriminatory intemal charges on any products or a substitute not produced in the importing Member Siate.
3. This Article does not apply to fees and similar charges commensurate with the cost of services rendered.
4. Nothing in paragraph 3 of this Article shall be construed to exclude from the application of paragraph 1 of this Article any tax or surtax of customs on any product or a substitute not produced in the importing State.
Article 88. Prohibition of Export Duties
1. The Member States shall not apply any export duties on goods of Community origin traded within the Community.
2. Nothing in this Article shall prevent a Member State from taking such measures as
are necessary to prevent evasion of export duties which are applied to products destined for export outside of the Community where such products are re-exported through another Member State.
3. For the purposes of this Article, âexport dutiesâ means any duties or charges with equivalent effect imposed on or in connection with the exportation of goods.
Article 89. Export Drawback
1. A Member State may refuse to treat as of Community origin goods which benefit from export drawback allowed by other Member States. in applying this paragraph, a Member State shall accord the same treatment to such goods consigned from all other Member States.
2. Whenever a Member Staite intends to apply an export drawback within the meaning of paragraph 6, it shall notify COTED.
3. The Member State shall, at the time of notification, set out the circumstances which justify the need to apply an export drawback, the products which will benefit therefrom, the nature and proposed duration of the measures, and such other information as COTED may prescribe from time to time.
4. COTED shall give its earliest consideration to the notification referred to in paragraph 3 and make a determination of the appropriateness of the measures and, if it is not satisfied, may recommend that the Member State which intends to apply an export drawback, modify the programme.
5. COTED shall review annually all export drawback programmes maintained by Member Siates.
6. For the purposes of this Article - (a) "export drawback"means any arrangement for the refund or remission, wholly or in part, of import duties applicable to imported materials: provided that the arrangement, expressly or in effect, allows refund or remission if certain goods or materials are exported, but not if they are retained for home use;
(b) "remission" includes exemption for materials brought into free ports and other places which have similar customs privileges;
(c) "duties" means:
(i) all charges on or in connection with importation, except fiscal charges to which Article 80 applies; and
(ii) any protective element in such fiscal charges;
(d) "materials" shall have the meaning assigned to it in Rule | of Schedule | to this Treaty.
Article 90. Internal Taxes and other Fiscal Charges
1. Save as otherwise provided in this Treaty, Member States shall not: (a) apply directly or indirectly to imported goods of Community origin any fiscal charges in excess of those applied directly or indirectly to like domestic goods, or otherwise apply such charges so as to protect like domestic goods; or
(b) apply fiscal charges to imported goods of Community origin of a kind which they do not produce, or which they do not produce in substantial quantities, in such a way as to protect the domestic production of substitutes which enter into direct competition with them and which do not bear, directly or indirectly, in the country of importation, fiscal charges of equivalent incidence.
2. A Member State shall notify COTED of all fiscal charges applied by it where, although the rates of charge, or the conditions governing the imposition or collection of the charge, are not identical in relation to the imported goods and to the like domestic goods, the Member State applying the charge considers that the charge is, orhas been made, consistently with sub-paragraph (a) of paragraph 1 of this Article. A Member State shall, at the request of any other Member State, supply information about the application of paragraph I of this Article.
3. For the purposes of this Article "fiscal charges" means internal taxes and other internal charges with equivalent effect on goods.
Article 91. Quantitative Restrictions
1. Save as otherwise provided in this Treaty, and in particular Articles 88, 89 and 90, and in Schedules Il, Ill and IV, a Member State shall not apply any quantitative restrictions on the importation of goods which are of Community origin.
2. Except as otherwise provided in this Treaty, and particularly in Articles 89 and 90, and in Schedule Ill, a Member State shall not apply any quantitative restrictions on exports to any other Member State.
3. This Article shall not prevent any Member State from taking such measures as are necessary to prevent evasion of any prohibitions or restrictions which it applies to imports from or exports fo third States provided that less favourable treatment is not granted to Member States than to countries outside the Community.
4. "Quantitative restrictions" means prohibitions or restrictions on imports into, or exports from, any other Member State, as the case may be, whether made effective through quotas, import licences or other measures with equivalent effect, including administrative measures and requirements restricting imports or exports.
Article 92. Difficulties Occasioned by Particular Imports
1. Subject to Article 150, wherever imports of any product, including any primary agricultural product, into a Member State cause serious injury or the threat of serious injury to domestic producers of like or directly competitive products in any industry or specific sector of any industry, the importing Member State shall be free to impose restrictions in respect of such product
(a) the import of the product in question results in a substantial decrease in demand for the like or directly competitive product produced within its jurisdiction; and
(b) the decrease in demand is directly linked to an increase in importsconsigned from another Member State.
2. Where a Member State decides to exercise its rights under paragraph I, it may provisionally, until a determination by COTED is made:
(a) limit imports of the product of Community origin by means of quantitative restrictions at a rate not less than the rate of such imports during any period of 12 months which ended 12 months before the date on which the restrictions entered into force;
(b) take such other measures either instead of or in addition to quantitative restrictions in accordance with sub-paragraph (a) as COTED may authorise.
3. In applying the restrictions in accordance with paragraph 2, a Member State shall not discriminate among the sources of supply or the nationality of suppliers, and shall give consideration to the proportionate share of the market previously enjoyed by each Member State.
4. Where a Member State:
(a) intends to act in accordance with paragraph 2, it shall, prior to taking such action, enter into consultations with affected Member States and notify COTED of that intention and the nature of the action;
(b) is unable to comply with sub-paragraph (a) of this paragraph, it shall, in taking the action, immediately notify COTED of the application and the nature of the action.
The Member State at the time of taking such action in accordance with paragraph
2 shall submit to COTED:
(a) such information as is reasonably available, including:
(i) the identity of the producers and the length of time during which the producers of the like or directly competitive product have been in production;
(ii) a complete description of the product and the annual volume of production;
(iii) an estimate of the size by volume of the domestic market, the share by volume in the domestic market of the domestic product, imports from other Member States and from third States;
(iv) information on changes in the level of sales and employment for the periods comparable to the periods during which imports have increased; and
(v) any other information as COTED may from time to time prescribe;
(b) a programme setting out the measures to be taken to assist the domestic producers to alleviate the difficulties they face and to restore their position in the domestic market.
6. COTED shall give its earliest consideration to the submission made under paragraph 5, and:
(a) make a determination of the appropriateness of the restrictions and whether they shall be continued;
(b) where it decides that the restrictions shall be continued, determine the adequacy of the programme and the period for which the restrictions shall continue.
7. Restrictions applied by a Member State pursuant to paragraph 2 shall be confined to those necessary to forestall a threat of serious injury or otherwise eliminate injury.
8. The Member States in applying restrictions pursuant to paragraph 2 shall not discriminate and:
(a) shall progressively relax them as the relevant conditions improve;
(b) may maintain them only to the extent that the conditions mentioned in paragraph 1 of this Article continue to justify their application.
9. If a Member State has demonstrated that the imposition of measures by another Member State under paragraph 2 has caused injury or the threat of serious injury to domestic producers in its jurisdiction, then the first mentioned Member State may request consultation with the Member State maintaining the restrictions and notify COTED accordingly.
10. Where the consultations do not result in a mutually agreed solution, the matter may be referred to COTED for a determination
11. If COTED is not satisfied that the Member States applying restrictions are acting in accordance with the provisions of paragraph 7, it may recommend to the Member State adversely affected thereby, alternative arrangements to the same end.
Article 93. Government Assistance to Economic Development
1. Except as Otherwise Provided In this Treaty, a Member State Shall Not Maintain or Introduce:
(a) the Forms of Assistance to Export of Goods to Any other Part of Thecommunity Which Are Described In Schedule V; or
(b) any other forms of assistance, the main purpose or effect of which is to frustrate the benefits expected from such removal or absence of duties and quantitative restrictions as is required by this Treaty.
2. if the application of any type of assistance by a Member State, although not contrary to paragraph 1(b) of this Article, nevertheless frustrates the benefits expected from such removal or absence of duties and quantitative restrictions as is required by this Treaty, COTED may authorise any Member Siate to suspend, in relation to the Member State which is applying the assistance, the application of such obligations under this Treaty as the COTED considers appropriate.
3. COTED may amend the provisions of Schedule V.
Article 94. Public Undertakings
1. Except as otherwise provided in this Treaty, Member States shall ensure the elimination in the practices of public undertakings of :
(a) measures the effect of which is to afford protection to domestic production and which would be inconsistent with this Treaty if achieved by means of a duty or charge with equivalent effect or quantitative restrictions or Government assistance; or
(b) trade discrimination on grounds of territorial origin in so far as it frustrates the benefits expected from the removal or absence of such charges, duties and quantitative restrictions as is required by this Treaty.
2. In so far as Article 92 is relevant to the activities of public undertakings, that Article shall apply to them in the same way as it applies to other enterprises.
3. Where a public undertaking has introduced a measure or practice which:
(a) is inconsistent with paragraph 1; or
(b) in law or in effect, results in limiting access to any market, distorts competition or fair trade, or otherwise nullifies or impairs benefits expected from the establishment of the CSME, then, in such a case, the aggrieved Member State may request consultations with the offending Member State and prompily notify COTED of the request.
4. The Member State alleged to have introduced a measure or practice within the meaning of paragraph 3 shail give favourable consideration to a request for consultations by the aggrieved Member State with a view to resolving their differences and arriving at a mutually acceptable solution.
5. if no mutually acceptable solution is reached within 30 days of the date of request for consultations, the aggrieved Member State may refer the matter to COTED, which shall cause an investigation to be carried out into the circumstance giving rise to the complaint; the investigation is to be completed within 60 days of the date of receipt of the complaint by COTED.
6. COTED shall, upon receipt of the report arising from the investigation, make available the report to the Member States concerned to facilitate consultations and to permit them to reach a mutually acceptable solution.
7. if no mutually acceptable solution is reached at the end of 15 days starting from the date of submission of the report by COTED to the parties concemed and COTED is satisfied that the rights of the aggrieved Member States under paragraph 1 have been unreasonably denied, then COTED shall request the offending Member State to withdraw the measure or practice, as the case may be.
8. If the offending Member State referred to in paragraph 7 fails to comply with the request of COTED within 60 days of the date thereof, then COTED may authorise the Member States to suspend, in relation to the Member State which is applying the measure or practice, the application of such provisions of this Treaty as COTED may decide.
9. The Member States shall ensure that new practices of the kind described in Paragraph 3 of this Article are not introduced.
10. For the purposes of this Article, "public undertakings" means central, regional, or local goverment authorities, public enterprises and any other organisation by means of which a Member State by law or in practice controls or appreciably influences imports from, or exports to any other part of the Community.
Article 95. Co-operation In Customs Administration
1. The Member States shall co-operate with each other to ensure that their interpretation and application of Articles 82, 83, 84, 86, 87, 88, 89, 90, 93 and Schedule are effectively and harmoniously applied, particularly with respect to provisions relating to:
(a) effective customs systems and procedures governing the movement of goods, people and conveyances across customs borders;
(b) maximising the effectiveness of co-operation among customs administrations and with intemational agencies to combat customs and other cross-border offences.
2. The Member States undertake to establish harmonised customs legislation and customs procedures in accordance with the provisions of this Chapter.
3. COTED shall establish procedures for co-operation in customs administration as described in paragraph 1 of this Article.
Part THREE. Subsidies
Article 96. Determination of a Subsidy
For the purpose of this Part, a subsidy shall be deemed to exist if there is a financial contribution by a Government or any public body within the territory of a Member State (hereinafter referred to as "government") where:
(a) a government practice involves direct transfer of funds (e.g., grants, loans and equity infusion) or potential direct transfer of funds or liabilities (e.g., loan guarantees);
(b) government revenue that is otherwise due is foregone or not collected (e.g., fiscal incentives, such as tax credits);
(c) a government purchases goods or provides goods or services other than general infrastructure;
(d) a government makes payments to a funding mechanism, or directs or entrusts to a private body the conduct of activities mentioned in sub- Paragraphs (a), (b) and (c) which are normally conducted by governments;
(e) there is any form of income or price support, and a benefit is thereby conferred.
Article 97. Types of Subsidies
1. A subsidy within the meaning of Article 96 shall be categorised as follows:
(a) a prohibited subsidy;
(b) a subsidy which:
(i) causes injury to a domestic industry; or
(ii) results in nullification or impairment of benefits accruing directly or indirectly to any Member Siate; or
(iii) seriously prejudices the interests of any Member State; or (co) a subsidy which causes serious adverse effects to a domestic industry of any Member State such as to cause damage which would be difficult to repair:
Provided that the subsidy is specific to an enterprise or industry or group of enterprises or industries within the jurisdiction of the granting Member State.
2. For the purpose of this Chapter a determination of whether a subsidy as defined in Article 92 is specific shall be governed by the following:
(a) in order to determine whether a subsidy referred to in paragraph 1 of this Article is specific to an enterprise or industry or group of enterprises or industries (referred to in this Part as "certain enterprises") within the jurisdiction of the granting authority, the following criteria shall apply:
(i) where the granting authority, or the legislation pursuant to which the granting authority operates, explicitly limits access to a subsidy to certain enterprises, such a subsidy shall be specific;
(ii) where the granting authority, or the legislation pursuant to which the granting authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, specificity shall not exist, provided that the eligibility is automatic and that such criteria and conditions are strictly adhered to. The criteria or conditions must be clearly spelled out in law, regulation, or other official document, so as to be capable of verification;
(iii) if, notwithstanding any appearance of non-specificity resulting from the application of the principles laid down in sub-sub-paragraphs (i) and (ii), there are reasons to believe that the subsidy may in fact be specific, other factors may be considered. Such factors are: use of a subsidy programme by a limited number of certain enterprises, predominant use of certain enterprises, the granting of disproportionately large amounts of subsidy to certain enterprises, and the manner in which discretion has been exercised by the granting authority in the decision to grant a subsidy. in applying this sub-paragraph, account shall be taken of the extent of diversification of economic activities within the jurisdiction of the granting authority, as well as of the length of time during which the subsidy programme has been in operation;
(b) a subsidy which is limited to certain enterprises located within a designated geographical region within the jurisdiction of the granting authority shail be specific. It is understood that the setting or change of generally applicable tax rates by all levels of government entitled to do so shall not be deemed to be a specific subsidy for the purposes of this Part;
(c) any subsidy falling under the provisions of Article 99 shall be deemed to be specific;
(d) any determination of specificity under the provisions of this Article shall be clearly substantiated on the basis of positive evidence.