CHAPTER IIRULES OF ORIGIN AND ADMINISTRATIVE COOPERATION
Article 5Rules of origin
1.
The rules of origin set out in Annex II shall apply in determining whether products originate in the regions or states listed in Annex I.
2.
The rules of origin set out in Annex II shall be superseded by those annexed to any agreement with the regions or states listed in Annex I when that agreement is either provisionally applied, or enters into force, whichever is the earlier. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date of provisional application or entry into force, from which the rules of origin in the agreement are to apply to products originating in the regions and states listed in Annex I.
3.
The Commission is empowered to adopt delegated acts in accordance with Article 22 concerning technical amendments to Annex II where required to take account of amendments to other Union customs legislation.
4.
Decisions on the management of Annex II shall be adopted in accordance with the examination procedure referred to in Article 19(5).
Article 6Administrative cooperation
1.
Where the Commission has made a finding, on the basis of objective information, of a failure to provide administrative cooperation or of irregularities or fraud, it may temporarily suspend the elimination of duties provided for in Articles 4, 7 and 8 (‘the relevant treatment’) in accordance with this Article.
2.
For the purpose of this Article, a failure to provide administrative cooperation means, inter alia:
(a)
a repeated failure to respect relevant obligations requiring the verification of the originating status of the product or products concerned;
(b)
a repeated refusal or undue delay in carrying out or communicating the results of subsequent verification of the proof of origin;
(c)
a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relating to the granting of the relevant treatment.
For the purpose of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the region or state concerned.
3.
Where the Commission, on the basis of information provided by a Member State or on its own initiative, finds that the conditions laid down in paragraphs 1 and 2 of this Article are met, the relevant treatment may be suspended in accordance with the advisory procedure referred to in Article 19(4), provided that the Commission has first:
(a)
informed the Committee referred to in Article 19(2);
(b)
notified the region or state concerned in accordance with any relevant procedures applicable between the Union and that state or region; and
(c)
published a notice in the Official Journal of the European Union stating that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud.
4.
The period of suspension under this Article shall be no longer than is necessary to protect the Union's financial interests. That period shall not exceed six months, but may be renewed. At the end of that period, the Commission shall decide either to terminate the suspension or to extend the period of suspension in accordance with the advisory procedure referred to in Article 19(4).
5.
The temporary suspension procedures set out in paragraphs 2, 3 and 4 shall be superseded by those set out in any agreement with the regions or states listed in Annex I when that agreement is either provisionally applied or enters into force, whichever is the earlier. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date of provisional application or entry into force, from which the temporary suspension procedures in the agreement are to apply to products covered by this Regulation.
6.
In order to implement the temporary suspension provided for in any agreement with the regions or states listed in Annex I, the Commission shall, without undue delay:
(a)
inform the Committee referred to in Article 19(2) that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud; and
(b)
publish the notice in the Official Journal of the European Union stating that a finding has been made of a failure to provide administrative cooperation or of irregularities or fraud.
The decision suspending the relevant treatment shall be adopted in accordance with the advisory procedure referred to in Article 19(4).