Article 13 Accounting segregation

Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating fungible materials, the customs authorities may, at the written request of those concerned, authorise the so-called ‘accounting segregation’ method (hereinafter referred to as the ‘method’) to be used for managing such stocks.

The method shall also apply to originating and non-originating raw sugar not containing added flavouring or colouring matter and destined for further refining, of subheadings 170 112, 170 113, 170 114 of the Harmonized System, which are being physically combined or mixed in an ESA State or in the Community before exportation to the Community and respectively to the ESA States.

The method shall ensure that, at any time, the number or quantity of products obtained which could be considered as originating in the ESA State(s) or in the Community is the same as that which would have been obtained had there been physical segregation of the stocks.

The customs authorities may make the grant of authorisation referred to in paragraph 1 subject to any conditions deemed appropriate.

The method shall be applied and the application thereof shall be recorded on the basis of the general accounting principles applicable in the country where the product was manufactured.

The beneficiary of the method may make out or apply for proofs of origin, as the case may be, for the quantity of products which may be considered as originating. At the request of the customs authorities, the beneficiary shall provide a statement of how the quantities have been managed.

The customs authorities shall monitor the use made of the authorisation and may withdraw it whenever the beneficiary makes improper use of the authorisation in any manner whatsoever or fails to fulfil any of the other conditions laid down in this Protocol.

For the purposes of paragraph 1, fungible materials means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes.