Article 7 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.

Notwithstanding paragraph 1, the products which are listed in Annex II(a) can be considered to be sufficiently worked or processed, for the purposes of Article 2, when the conditions set out in that Annex are fulfilled.

The conditions referred to in paragraphs 1 and 2 above indicate, for all products covered by this EPA, 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 either 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 paragraphs 1 and 2, non-originating materials which, according to the conditions set out in Annex II and Annex II(a) should not be used in the manufacture of a given product may nevertheless be used, provided that:

1. (a)

   their total value does not exceed 15 per cent of the exworks price of the product;

2. (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.

The provisions of paragraph 4 shall not apply to products of Chapters 50 to 63 of the Harmonized System.

Paragraphs 1 to 5 shall apply subject to the provisions of Article 8.