RULES GOVERNING THE APPLICATION OF THE LIST OF CONDITIONAL DUTY EXEMPTIONS
1. A Member State may refuse to grant full duty exemption for any good eligible thereof under the List and may choose instead to apply a level of tariff on such good not higher than that provided in the Schedule of Tariff Rates.
2. In a number of cases (for example, in connection with shipping and aircraft, for health, governmental, social and cultural purposes), while the scope of the duty exemption has been specified, each Member State is free to approve the beneficiaries (whether the individual, the institution or the organization) of the exemption.
3. The reference in the List to goods for the use of international organizations or their personnel is understood to include inter-governmental organizations operating within the Common Market pursuant to an agreement in force between such organizations and the Government of one or more Member States.
4. (a) Where the goods produced by an enterprise do meet the qualifying conditions set down with respect to those goods in Schedule II to the Common Market Annex to the Treaty, that enterprise will not qualify for exemption from duty with regard to the materials utilized in the production of those goods.
(b) This Rule will not apply to goods which are produced for export to third countries.
(c) The Rule will have effect only with regard to concessions approved following entry into force.
(d) This Rule will enter into force concurrently with the entry into force of the amended Common Market Origin rules established by the Council in July 1990, and the agreement by the Council with respect to the amendment of the Harmonized Scheme for Fiscal Incentives to take account of the provision of this rule.
5. (a) The items set down in Part I of the List of Ineligibles appended to the List of Conditional Duty Exemptions shall not be eligible for exemption or reduction of duty where they are imported for use in Industry, Agriculture, Forestry, Fisheries and Mining, except:
- when the item is imported for use in new investment or substantial expansion; or
- when the item is provided by a country or an international institution in the context of development finance with a view to assisting the economic development of the importing Member State, and when the agreement between the importing Member State and the donor country or international institution requires sourcing from a particular extra-regional source on a concessional duty basis.
(b) The items set down in Part I and Part II of the List of Ineligibles appended to this List of Conditional Duty Exemptions shall not be eligible for exemption or reduction of duty where they are imported for use in circumstances contemplated in Section XI - For Other Approved Purposes (excluding 23 - Goods [including foodstuff] imported for use in rehabilitation or relief following natural disaster, as approved by the Competent Authority), except that this ineligibility will not apply where the Competent Authority is satisfied that the items are gifts or have been provided on a concessional basis.
