Article 1

Regulation (EU) No 374/2014 is amended as follows:

1. (1)

   Article 1 is replaced by the following:

   ‘Preferential arrangements

   Article 1

   Customs duties on goods originating in Ukraine shall be reduced or eliminated in accordance with Annex I. Where reference is made in Annex I to staging categories, the basic rate of duties for 2014 and 2015 shall be eliminated in the case of staging category 0 and shall be reduced by 25 % in the case of staging category 3, by 16,7 % in the case of staging category 5 and by 12,5 % in the case of staging category 7.’;

2. (2)

   in Article 2, the following point is added:

   ‘(e)

   respect for democratic principles, human rights and fundamental freedoms and respect for the principle of the rule of law provided for in Article 2 of the Association Agreement^f1.’;

3. (3)

   in Article 7, the second paragraph is replaced by the following:

   ‘It shall apply until 31 December 2015.’;

4. (4)

   Annexes II and III are replaced by the text set out respectively in Annexes I and II to this Regulation.