Schedule II

List of Conditions to be Complied with as Provided
under Article 14 of the Annex to the Treaty and
the Rules Regarding Common Market Origin

1 January 1998
Caribbean Community Secretariat

The Treaty Establishing The Caribbean Community

Article 14

Common Market Origin

1. Subject to the provisions of this Article, in this Annex goods that are consigned from a Member State to a consignee in another Member State and that comply with either of the following conditions shall be treated as being of Common Market origin, that is to say, the goods must:

a. have been wholly produced within the Common Market; or

b. have been produced within the Common Market wholly or partly from materials imported from outside the Common Market or of undetermined origin by a 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 listed in Part A of the List in Schedule II (hereinafter referred to as "the List"), only by satisfying the conditions therefor specified in that Part.

2. In   the case of goods specified in Part B of the List, the conditions to be complied with shall be as set out in that Part of the List with effect from the dates appearing against the respective goods in lieu ofthe conditions applicable prior to those dates in respect of each of those goods.

3. Goods which undergo a process of repair, renovation or improvement within the Common Market   having been consigned for that purpose from a Member State to a consignee in another Member State shall, on their return to the Member State whence they were exported, be treated for the purpose of re-�importation only in like manner as goods which are of Common Market origin, provided that the goods are reconsigned directly to the Member State whence they were exported and the value of materials imported from outside the Common Market 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.

4. Where there is an interruption or inadequacy of supplies of regional materials and the manufacture of goods, for which the qualifying condition for Common Market origin is that of "wholly produced" or if 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.

5.

a. The Competent Authority shall, after the receipt of the 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, shall inform the Secretary-General as well as the Competent Authorities of the other Member States of the inability of the manufacturer to obtain supplies of the regional materials from within the Common Market, the quantities and precise specifications of the regional materials and the period during which those materials are required.

b. The Secretary-General shall, on receipt of the information from the Competent Authority, 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 replies to such an enquiry shall be communicated to the Secretary-General within seven calendar days of the despatch of his enquiry.

6. If the Secretary General, on the basis of his investigations, is satisfied that the representation from the manufacturer is justified, he shall, notwithstanding that he may not have received a reply to his enquiry from one or more Member States, within fourteen days after the receipt of the information from the Competent Authority, issue, on behalf of the Council, a certificate to the Competent Authority authorising the use of like materials from outside the Common Market, subject to such conditions as he may think fit to impose; the Secretary-General shall inform Member States of the issue of his certificate, including any conditions attaching thereto, and that, notwithstanding anything to the contrary in the foregoing provisions of this Article, goods manufactured from like materials imported from outside the Common Market shall be deemed to satisfy the qualifying condition for Common Market origin treatment.

7. In this Article, "Competent Authority" means the Minister so designated in the country of the manufacturer.

8. A Member State may treat as of Common Market 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 concerned shall promptly inform the Council of any trading arrangements concluded pursuant to this paragraph and the Council may, as it deems fit, recommend to the Member States concerned the adoption of alternative trading arrangements.

9. The provisions of Schedule 11 shall apply to and have effect for the purposes of this Article. The Council shall keep that 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 Common Market.

List of Conditions to be Complied with as Provided under Article 14

of the Annex to the Treaty and the Rules Regarding

Common Market Origin

This Schedule consists of

(a) the List comprising

Part A: goods referred to in sub-paragraph (b) (ii) of paragraph 1 of Article 14 of the Annex to the Treaty;

Part B: goods referred to in paragraph 2 of Article 14 of the Annex to the Treaty

(b) the Rules regarding Common Market origin.

(a) THE LIST

The application of the List is governed by the following general notes:

(i) In this List, where a tariff heading number is preceded by the word "ex", only those products of that heading specified in the column headed "Product" are referred to. Descriptions of finished products and of materials are to be interpreted according to the relative Section and Chapter Notes of the Harmonised Commodity Description and Coding System (HS) and the General Rules for the Interpretation of the Harmonised System.

(ii) Four figure references of the type "04.02", "17.04", etc. are references to the headings of the Harmonised Commodity Description and Coding System (HS).

(iii) Where the condition to be complied with for any product does not prescribe the use of regional materials, it shall always be understood that materials imported from outside the Common Market or of undeter�mined origin may be used. If such materials are used in a more advanced state of processing than that specified in the List, the finished product shall be ineligible for Common Market treatment.

PART A

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