TITLE II
DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

ARTICLE 2

For the purpose of implementing this Agreement, the following products shall be considered as originating in the Community:

(a)

products wholly obtained in the Community within the meaning of Article  4of this Protocol;

(b)

products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 5 of this Protocol.

For the purpose of implementing this Agreement, the following products shall be considered as originating in Jordan:

(a)

products wholly obtained in Jordan within the meaning of Article  4 of this Protocol;

(b)

products obtained in Jordan incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Jordan within the meaning of Article  5of this Protocol.

Materials originating in the Community shall be considered as materials originating in Jordan when incorporated into a product obtained there.  It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6(1) of this Protocol.

Materials originating in Jordan shall be considered as materials originating in the Community when incorporated into a product obtained there.  It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6(1) of this Protocol.

ARTICLE 4
Wholly obtained products

The following shall be considered as wholly obtained in the Community or Jordan:

(a)

mineral products extracted from their soil or from their seabed;

(b)

vegetable products harvested there;

(c)

live animals born and raised there;

(d)

products from live animals raised there;

(e)

products obtained by hunting or fishing conducted there;

(f)

products of sea fishing and other products taken from the sea outside the territorial waters of the Community or Jordan by their vessels;

(g)

products made aboard their factory ships exclusively from products referred to in subparagraph (f);

(h)

used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;

(i)

waste and scrap resulting from manufacturing operations conducted there;

(j)

products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;

(k)

goods produced there exclusively from the products specified in subparagraphs (a) to (j).

The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships:

(a)

which are registered or recorded in an EC Member State or in Jordan;

(b)

which sail under the flag of an EC Member State or of Jordan;

(c)

which are owned to an extent of at least 50 per cent by nationals of EC Member States or of Jordan, or by a company with its head office in one of these States, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of EC Member States or of Jordan and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d)

of which the master and officers are nationals of EC Member States or of Jordan; and

(e)

of which at least 75 per cent of the crew are nationals of EC Member States or of Jordan.

ARTICLE 5
Sufficiently worked or processed products

For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non originating materials used in manufacturing and apply only in relation to such materials.  Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non originating materials which may have been used in its manufacture.

Notwithstanding paragraph 1, non originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that:

(a)

(b)

any of the percentages given in the list for the maximum value of non originating materials are not exceeded through the application of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to  63of the Harmonized System.

Paragraphs 1 and  2 shall apply except as provided in Article  6.

ARTICLE 6
Insufficient working or processing operations

Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied:

(a)

operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b)

simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making up of sets of articles), washing, painting, cutting up;

(c)

(i)

changes of packaging and breaking up and assembly of packages;

(ii)

simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations;

(d)

affixing marks, labels and other like distinguishing signs on products or their packaging;

(e)

simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in the Community or Jordan;

(f)

simple assembly of parts to constitute a complete product;

(g)

a combination of two or more operations specified in subparagraphs(a) to (f);

(h)

slaughter of animals.

All the operations carried out in either the Community or Jordan on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

ARTICLE 7
Unit of qualification

The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.

(a)

when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;

(b)

when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Protocol.

Where, under General Rule  5of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

ARTICLE 8
Accessories, spare parts and tools

ARTICLE 9
Sets

ARTICLE 10
Neutral elements

In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

energy and fuel;

plant and equipment;

machines and tools;

goods which do not enter and which are not intended to enter into the final composition of the product.